Personal Umbrella Liability Insurance

How much insurance is enough?

If you experience a costly insurance claim due to a car accident or someone being injured on your property, you may be responsible for hundreds of thousands of dollars in costs beyond the liability limits of you insurance policies. Umbrella insurance provides an additional layer of protection, paying the costs that exceed standard policy limits so that your assets are protected.

Umbrella Policy

An umbrella policy is also called personal umbrella liability insurance and adds and extends the liability coverage you already have under your home, car, boat, or recreational vehicle insurance. If you are your family members are found liable due to an automobile accident, an injury on your property, or other covered situation, an umbrella policy can reduce or even eliminate your out of pocket expenses.

What’s Included

With a standard personal umbrella liability insurance policy you receive:

  • $1 million in coverage, with higher limits available;
  • Liability coverage in addition to your auto, home or recreational vehicle policy that becomes available when you exceed the limit of those policies;
  • Protection from liability claims that are not normally covered under your homeowners policy, such as libel or slander;
  • Payment of expenses associated with a lawsuit, including defense costs, attorney fees, and other expenses regardless of the validity of the claims; and
    Coverage for you and residents of your household insured under the policy.

With an umbrella policy you and your family will have peace of mind knowing that your assets and future earnings are protected.


There are a few options when purchasing an umbrella policy:

  • Addition to an existing policy*
  • Stand-alone policy
  • Business policy

*Some insurers only sell umbrella policies that are an addition to an existing policy.


The cost of an umbrella policy will vary based on various rating factors, the same way that your home and auto policies are rated. Also, some insurance companies require that you meet specific threshold coverage amounts on your homeowners or car insurance policies before you can purchase an umbrella policy. If you meet those thresholds, most people only pay between $150 and $400 per year for a $1,000,000 umbrella policy.

If you have questions about an umbrella policy and would like to learn more about coverage options talk to James Insurance Agency today. Call us at 252-203-0969 to speak with one of our agents who can help you determine the right coverage for your needs.

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