Pennsylvania Umbrella Insurance
Umbrella Insurance in Lancaster, Reading, Harrisburg & Surrounding PA Areas
What Is Umbrella Insurance and Why You Might Need It
Have you ever wondered if your auto insurance or homeowners insurance would be enough if you were sued after a serious accident? Umbrella insurance — also called a personal umbrella policy — is a type of excess liability coverage that gives you a higher level of liability protection beyond the limits of your underlying policies. It helps protect your assets, savings, and future earnings if a major claim or lawsuit exceeds your standard insurance limits.
How Umbrella Insurance Works
Umbrella insurance kicks in only after the liability limits on your primary policies — like your homeowners, auto, boat, or rental property insurance — have been exhausted. For example: if you’re found liable for injuries or property damage and the cost exceeds your home or auto liability limits, umbrella coverage can pay the difference, up to the additional amount you choose.
Example:
- Your auto insurance liability limit: $300,000
- Cost of damages and injuries: $850,000
- Without umbrella insurance: You pay $550,000 out-of-pocket
- With a $1 million umbrella policy: Your umbrella policy covers the remaining shortage after your primary insurance pays its limits.
Umbrella policies are typically sold in $1 million increments and can go up to $5 million (or more) depending on your needs and risk profile.
What Umbrella Insurance Covers
Umbrella insurance provides broad liability protection that goes beyond what your base policies cover. It generally includes:
✔ Excess Personal Liability
Pays for bodily injury and property damage beyond the limits of your auto, home, or other primary insurance coverage.
✔ Legal Defense Costs
Covers attorney fees, court costs, and settlement expenses — even if the lawsuit is groundless.
✔ Broader Liability Claims
May cover incidents your standard policies don’t, such as:
- Libel, slander, or defamation
- False arrest or imprisonment
- Invasion of privacy
These scenarios are often not covered by standard liability policies but may be included in umbrella coverage.
Note: Umbrella insurance typically doesn’t cover your own injury or property loss — other policies handle those claims — and it isn’t designed to cover business liabilities or intentional acts.
Why Umbrella Insurance Matters
Life is unpredictable, and major liability claims can occur in many ways — from serious auto accidents to injuries on your property or a lawsuit against you after an event. Without enough liability protection, you could be personally responsible for large judgments that drain your savings or even put your assets at risk. Umbrella insurance helps bridge the gap between your primary liability limits and the real cost of a claim.
This extra layer of asset protection is especially valuable if you:
- Own a home, rental property, or other valuable assets
- Have a high net worth
- Host parties or frequently have visitors
- Own a swimming pool, trampoline, or dog
- Employ teen drivers in your household
- Want to safeguard your financial future from catastrophic liability claims
How Much Does Umbrella Insurance Cost?
One of the most compelling features of umbrella insurance is its affordable pricing compared to the level of coverage offered. Most personal umbrella policies start around the cost of a modest annual premium — often between $150 and $400 per year for $1 million in coverage. Premiums may vary based on underlying liability limits, your location, your assets, and the number of insured vehicles or properties you own.
Because umbrella insurance is essentially a high-limit liability policy, you’ll generally need to maintain minimum liability coverage on your existing policies before purchasing it.
Is Umbrella Insurance Right for You?
If you want comprehensive liability protection beyond your standard auto and home insurance, umbrella coverage is often a wise addition — especially for Pennsylvanians in areas like Lancaster, Reading, Harrisburg and surrounding communities who own assets worth protecting. Even a single accident’s legal costs can exceed basic insurance limits, and umbrella insurance steps in where other policies stop.
Request Umbrella Insurance Quotes Today
Don’t leave your finances and assets exposed to unexpected lawsuits or liability claims. Umbrella insurance quotes can help you compare options and find the right level of extra protection — from $1 million and up — to fit your needs and budget.