How umbrella insurance works
Your auto and homeowners policies each have a liability limit. If you're found responsible for an accident and the damages go beyond those limits, a personal umbrella policy can help pay the difference — up to the umbrella's limit.
- Extra liability above your auto, home and other underlying policies
- Legal defense costs, subject to policy terms
- Certain claims your underlying policies may not cover, depending on the policy
Why it matters more in Michigan
When drivers choose lower PIP limits under Michigan's auto reform, injured people may sue at-fault drivers for medical costs above their PIP coverage. That makes strong liability limits — and an umbrella — more valuable for many Michigan families. Read more in our Michigan No-Fault Guide.
Umbrella policies usually require you to carry certain minimum liability limits on your auto and home policies. We'll make sure everything lines up.
Umbrella insurance FAQs
What does a personal umbrella policy cover?
It adds liability coverage above your auto, home and other underlying policies, and may help with legal defense costs, subject to policy terms.
Who needs umbrella insurance?
People with assets to protect, teen drivers, rental properties, pools, dogs or a higher risk of being sued often consider an umbrella policy.
Does umbrella insurance cover my own injuries or property?
No. Umbrella insurance is liability coverage — it protects you when you're responsible for injuries or damage to others.
Do I need certain auto and home limits first?
Usually yes. Umbrella policies typically require minimum liability limits on your underlying policies.