Nadler Insurance
Insurance EducationVideo

Coverage Explanation: Umbrella Insurance

By Zach Nadler·

Show Notes

Growing Up Covered Insight

Growing Up Covered Insight

Blog post draft (from video)

Quick summary

Umbrella insurance is an extra layer of liability protection that sits on top of your underlying policies (usually auto and homeowners/renters). This episode explains what an umbrella policy is, when it can help, and how to decide if it makes sense.

What umbrella insurance typically helps with

  • Larger liability claims that exceed your auto or home liability limits
  • Legal defense costs related to covered liability claims
  • Certain situations that may not be as well-covered by underlying policies (varies by carrier and form)

    • How it works (the simple version)

  • You have underlying liability limits on auto and home/renters.
  • If a covered claim exceeds those limits, the umbrella can respond above them.
  • Umbrella policies often require you to carry certain minimum underlying limits.

    • Common examples (confirm from video)

  • A serious auto accident with injuries that exceed your auto liability limits
  • A guest injury claim that turns into a large lawsuit
  • A liability claim involving your household members

    • What an umbrella usually does not cover

  • Damage to your own property (that is property coverage)
  • Business activities (often needs separate business liability)
  • Intentional acts

    • Who should consider an umbrella

  • Households with higher assets or income to protect
  • Drivers with teen drivers or frequent driving exposure
  • People who host often (pool, gatherings, pets, etc.)
  • Anyone who wants extra peace of mind beyond standard limits

    • Questions to ask when reviewing an umbrella

  • What underlying limits are required for auto and home?
  • Does it include UM/UIM umbrella coverage (if available)?
  • Any exclusions specific to my lifestyle or property?
  • What is the premium difference between $1M and $2M limits?

    • Video

  • Watch here: https://youtu.be/ZfMI1OGkU4E?si=KKFk11M3eFfjQRtB

    • Notes