Discover the Best Umbrella Insurance Policies of 2021
Table of Contents
The Best Umbrella Insurance Options by Category
Best for Competitive Premiums When Bundling: Allstate
The Best for Business Owners: Chubb
Best for Small Business Liability Needs: Travelers
The Best for Military-Associated Individuals: USAA
The best umbrella insurance provides extra protection in cases where you might experience a major claim or loss, like an umbrella over all your other insurance policies. Homeowner and auto policies cover liability for an accident or injury, but an umbrella policy extends liability coverage.
Businesses and individuals benefit from umbrella insurance coverage because it can provide protection in the rare instance where an accident or claim runs into the hundreds of thousands of dollars or higher. Umbrella insurance can be especially important if you have large assets that may make you the target of a lawsuit.
Best Umbrella Insurance Options
Here are some strong options for insurers with excellent reputations for high-quality customer service, dependable coverage, and affordable premiums.
Best Umbrella Policy for Competitive Premiums When Bundling: Allstate
Allstate’s personal umbrella policies cover bodily injury, personal injury, and property damage. For example, if a guest has an accident in your backyard that results in high medical bills, a personal umbrella policy could help to cover high expenses. Allstate’s umbrella policies are available in million-dollar increments from $1 million to $5 million. The insurer’s reputation for affordable premiums is also stronger if you are buying other policies from them, including automobile, watercraft, and motorcycle insurance policies.
Pros:
- Very inexpensive premiums for current and new Allstate customers
- Strong reputation for boat owner policies (boat accidents can be a big source of liability)
Cons:
- Low coverage limits compared to what some small businesses need
- Minimum coverage still needed on other policies first
Best Business Umbrella Insurance: Chubb
Finding the best provider for a medium to large-size business can be trickier than finding an insurer for lower-limit personal policies. Chubb specializes in offering tailored solutions for U.S. and Canadian-based companies with coverage up to $25 million. It specifically works with companies that have extensive risk management programs and revenues greater than $1 billion, making them a valuable option if your business needs protection against catastrophic loss.
Pros:
- A wide variety of coverage options protect against lawsuits of many kinds
- Strong track record of long-term contracts with major companies
Cons:
- Long and lengthy process to get a quote
- May not fit small businesses with limited liability
Best for Small Business Liability Needs: Travelers
Travelers offers many options for those who need more coverage than the average personal policy. Coverage options branch out beyond the standard umbrella, including specialty Excess and Surplus insurance as well as monoline insurance, which can help if a single element was excluded from another small business policy. Talk to a Travelers agent to get a small business umbrella quote and to learn how you can customize a policy to your needs.
Pros:
- Customizable small business policies
- Easy online quote process
Cons:
- May need to work with an agent to finalize an online quote
- Potentially higher prices if you have insurance from another insurer
Competitive Option for Military-Associated Individuals: USAA
Active duty military, veterans, and military spouses are often familiar with USAA, but it’s helpful to know they offer personal umbrella coverage. For about $1 a day in some cases, you will have peace of mind knowing that an accident won’t be devastating to your finances. Unless you already have reasonable insurance elsewhere that offers a compelling bundling discount, military families should consider USAA given the strength of the insurer and the affordability of its premiums.
Pros:
- Inexpensive add-on umbrella policy
- Trustworthy company with strong financials
Cons:
- Only for USAA members
- No commercial policies
The Best Budget-Friendly Personal and Commercial Umbrella Insurance: Liberty Mutual
Liberty Mutual offers your standard auto insurance policy and homeowners policy. But it’s also a great fit if you want the same carrier to underwrite a personal umbrella policy for extra coverage. The company also offers affordable options for umbrella insurance for businesses.
Pros:
- Multiple options for policy limits above $1 million
- Coverage extends globally, a value-add if you travel
Cons:
- Purchase process requires a potentially time-consuming agent call
- Pricing can vary between current Liberty Mutual policyholders and those seeking umbrella policy as a standalone policy
Tips for Buying Umbrella Insurance
It’s usually best to begin your search with your current insurer, since many companies will charge a bundling discount if you add umbrella coverage to an existing policy.
Determine how much coverage you want at the outset, since many policies begin with $1 million in coverage and go up from there. Make sure to compare the level of coverage when looking at premium costs.
And lastly, be sure to discuss your personal situation with a qualified insurance agent. Many businesses use policies with higher limits because the potential for high-cost lawsuits is higher. On the other hand, a personal policy may not need to cover more than your net worth.
Umbrella Insurance FAQs
Who has the best umbrella insurance policy?
We found excellent, competitive umbrella insurance options at Allstate, Chubb, Travelers, USAA, and Liberty Mutual. However, remember that your current insurer may offer a better deal by letting you bundle with other policies.
Can I buy umbrella insurance separately?
While it is usually cheaper and easier to get umbrella coverage from your primary insurer due to bundling discounts, some companies will sell you a separate policy. This is most common, however, for businesses with large policy needs.
What is umbrella insurance?
This coverage extends your protection against liability claims, which can include anything from property damage to medical injury liability, libel or slander, and landlord liability.
How does umbrella insurance work?
If a claim fits within the coverage limits of your homeowner’s insurance or auto insurance, you’re all set. If a claim exceeds those limits, umbrella insurance covers the difference.
Who needs umbrella insurance?
Generally, businesses and rental property owners should consider umbrella insurance, as well as individuals and families with a net worth of $1 million or more.
How much does umbrella insurance cost?
According to the Insurance Information Institute, $1 million in umbrella coverage can cost as little as $150 and as much as $300 annually. Higher coverage tends to cost less— about $50-$75 per additional $1 million— since claims that large are rare.
Methodology
In choosing the best umbrella insurance options, we evaluated company credit ratings to evaluate their overall strength as a business. We consulted ratings as reported by A.M. Best, the Insurance Information Institute, and Kiplinger’s Umbrella Insurance Calculator. We also took into account customer satisfaction, availability, coverage limits, and costs for both personal and business policies, in addition to reviewing carrier offerings.
Jessie Jordan
Robbie Boddy
