Umbrella policy
Content context: plan year 2026
In plain terms
A personal umbrella policy adds a layer of liability coverage (typically $1 million or more) on top of the liability limits in your home and auto policies. It kicks in when a claim exhausts those underlying limits, and it usually requires you to carry a minimum underlying limit first, such as $300,000 of home or auto liability.
This is an explanation, not an eligibility decision. A plan-year label is not a source-check date.
A plain example
A guest is seriously injured at your home and wins a $700,000 judgment. Your $300,000 home liability pays first; your umbrella covers the remaining $400,000, protecting your savings and future income.
Why it matters
Umbrella coverage is remarkably cheap for the protection it adds: often a few hundred dollars a year for a million dollars of liability. For anyone with meaningful assets or income to protect, it's one of the best values in insurance.