Does an Umbrella Insurance Policy Cover Both Home & Auto?

Posted May 1, 2025

If you need to extend your policy limit on your primary coverage, umbrella insurance provides comprehensive protection that kicks in when your standard benefits reach their maximums.

Still, we understand why many people wonder if umbrella insurance can be added to both home and auto policies. That’s why we’ve created this guide explaining what umbrella insurance is, how it works with existing policies, the process for adding it, and the benefits it provides.

WHAT IS UMBRELLA INSURANCE?

The purpose of an umbrella policy is to raise your car or homeowner insurance liability limits based on your total assets and risk exposure under an additional plan. So once the funds from those underlying policies get paid out fully, these benefits fill in the gap between your primary insurance’s maximum and the umbrella policy.

For example, if you get into an auto accident and are liable for $150,000 in damages, but your policy only covers $100,000, your umbrella auto insurance may reimburse you for the remaining $50,000.

EXCESS LIABILITY VS. UMBRELLA INSURANCE

Unlike excess liability insurance, which only extends the limits of an individual policy, umbrella insurance provides a broader range of coverage to support underlying risks beyond the scope of an excess plan. Here’s how to think of either option in simpler terms:

Excess liability insurance typically extends the limits of one specific policy (like auto or homeowners) and follows the same terms of the underlying policy it supports.
Umbrella insurance provides broader coverage that extends across multiple policies (auto, home, boat, etc.) and may cover some additional risks not covered by your primary policies.

WHAT UMBRELLA INSURANCE DOES AND DOES NOT COVER

Umbrella insurance often provides better coverage than many think. Like many insurance solutions, there’s potential to extend benefits to cover certain risks by working with a professional agent or broker.

WHAT UMBRELLA INSURANCE COVERS:

Liability claims that exceed your standard auto or homeowners policy limits
Property damage from accidents you’re responsible for
Bodily injury claims when you’re at fault
Legal defense costs for covered claims
Libel, slander, and certain other lawsuits
Protection across multiple policies (auto, home, boat, etc.)
Some risks that are not included in your primary policies—speak with an insurance agent to learn more

WHAT UMBRELLA INSURANCE DOESN’T COVER:

Your own injuries or property damage (it’s liability protection for claims against you)
Business-related liabilities (these require separate business insurance)
Intentional or criminal acts
Contractual liabilities you’ve agreed to
Acts of negligence, such as vandalism, crimes committed while intoxicated, etc.

CAN I ADD AN UMBRELLA POLICY TO MY HOMEOWNERS AND CAR INSURANCE?

Yes! You absolutely can add an umbrella policy to both your homeowners and auto insurance—that’s exactly what these policies are designed to do. What’s more, this extra coverage is particularly valuable if you:

Own significant assets that need protection
Have a swimming pool, trampoline, or other “attractive nuisances” on your property
Own rental properties
Coach youth sports or volunteer regularly
Have teenage drivers in your household

CAN I ADD AN UMBRELLA POLICY TO MY HOMEOWNERS AND CAR INSURANCE?

Own significant assets that need protection
Have a swimming pool, trampoline, or other “attractive nuisances” on your property
Own rental properties
Coach youth sports or volunteer regularly
Have teenage drivers in your household

HOW TO ADD UMBRELLA INSURANCE TO YOUR HOMEOWNERS AND AUTO BENEFITS

Adding umbrella coverage to your existing policies is surprisingly straightforward. Here’s what you’ll need to do to proceed:

Contact your insurance team
Provide necessary information
Work with your partner to check your current liability limits
Determine how much umbrella coverage you need with your agent
Pay premiums to begin extending your coverage

Looking for umbrella insurance? Contact us today to extend your policy limits at an affordable rate.

THE BENEFITS OF ADDING UMBRELLA INSURANCE

Remember, the primary reason for umbrella insurance is to offer higher limits on your homeowners or auto benefits. Nevertheless, this solution provides more value by offering the following advantages:

It may grant benefits for both property damage and bodily injury claims
It typically covers additional liabilities beyond just auto and home policies
It may also include claims against libel, slander, and other qualified lawsuits
It offers affordable protection against potentially expensive liability claims that may arise unexpectedly

HOW MUCH UMBRELLA INSURANCE DO I NEED?

For most homeowners and auto insurance holders, an umbrella policy should cover at least the value of your total assets. If you own a home worth $500,000, have retirement accounts worth $250,000, and other assets totaling $100,000, we often recommend rounding up coverage to $1,000,000.

Schedule an individualized risk assessment for umbrella insurance >

TIPS FOR GETTING AFFORDABLE UMBRELLA INSURANCE POLICIES:

We know every dollar counts in this economy. Here are our tips that could yield lower premiums on umbrella insurance for you:

Bundle policies with one insurance provider
Shop around and compare quotes from multiple companies
Maintain a clean driving record and good credit score
Ask about available discounts (loyalty, claim-free, etc.)
Partner with an agent to review and adjust coverage annually to ensure you’re not over-insured
Work with an independent insurance agent who can find the best rates

ENROLL IN AFFORDABLE UMBRELLA INSURANCE WITH JD FULWILER

Have questions or need a free quote? Reach out—we’re here to help you find the right umbrella insurance for your needs. Schedule a consultation with one of our insurance experts to discuss your options or call us directly at (800) 735-8325.

Ashley Barto