About Umbrella Insurance
Personal umbrella policies emerged in the 1940s when affluent households layered excess liability above auto and homeowners limits to protect growing wealth from catastrophic lawsuits.1
ISO introduced standardized umbrella forms in the 1970s, codifying underlying limit requirements, self-insured retentions (SIRs), and drop-down coverage for exposures not addressed on primary policies.2
Fast forward to 2025: the Insurance Information Institute reports that jury awards over $10 million (“nuclear verdicts”) have increased 27% since 2019, and personal umbrellas are now mainstream for families with teenage drivers, rental properties, or significant assets in the New York tri-state area.3
Coverage Highlights
Umbrella policies add both height and breadth to your existing liability portfolio.
- Excess liability over auto, home, boat, and rental policies: Provides $1 million to $10 million (or more) in additional limits once primary coverage is exhausted.1
- Drop-down protection: Responds to certain exposures not covered by underlying policies after you satisfy the SIR, such as libel or false arrest claims.2
- Worldwide personal injury: Extends to libel, slander, or invasion-of-privacy incidents anywhere, protecting against social-media disputes and online reviews.3
- Defense costs outside the limit: Many umbrellas pay defense in addition to liability limits, preventing attorney fees from eroding your settlement capacity.4
- Excess UM/UIM: Adds extra uninsured/underinsured motorist protection for severe bodily injuries caused by underinsured drivers.5
- Rental property & recreational liability: Extends coverage to owned rental units, boats, ATVs, and other exposures so every asset shares the same liability tower.6