Umbrella Insurance: What is Not Covered? How Much Does it Cost?

what is not covered by umbrella insurance

Have you ever wondered what would happen if you exceeded the liability limit on your home or auto policy? You would most likely have to pay the rest out of pocket. This is where umbrella insurance comes in to help.

What is Umbrella Insurance?

Umbrella insurance is extra insurance that provides coverage beyond the existing limits of your standard policies. Umbrella insurance can cover injuries, property damage, lawsuits, and more.

What is Not Covered by Umbrella Insurance?

Umbrella insurance generally does not cover the following:

  • Your Personal Property 

Personal umbrella policies typically cover damage you cause to other people’s property but do not cover damage you cause to your own property. For example, your bathtub overflows and destroys the floor in your bathroom. The damage you caused would not be covered.

  • Business Losses

Losses related to the operation of your business or damage to your business property would generally not be covered by a personal umbrella policy.

  • Contracts

Personal umbrella insurance typically won’t protect you from any liability arising from a contract you’ve entered.

  • Intentional or criminal actions 

If you cause intentional harm or participate in illegal behavior, then an umbrella policy will not protect you from the consequences of these actions.

How Much Does Umbrella Insurance Cost?

The cost of umbrella insurance depends partly on how much coverage you choose to get. However, umbrella insurance is usually an affordable option. For example, a 1 million dollar umbrella policy typically costs you around 150-300 dollars annually. Many factors determine the cost of an umbrella policy, like how many people are in your household, your location, your net worth, and the properties and vehicles you own.

Let’s Talk

Umbrella insurance is there when you need it the most. Let one of our experienced Avery Hall agents walk you through all of the umbrella plans we have to offer today at 410-742-5111.


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