Umbrella insurance adds liability protection on top of your home and auto policies — and it is often surprisingly affordable for the coverage it provides.
How much does umbrella insurance cost?
According to the Insurance Information Institute, a $1 million personal umbrella policy generally costs about $150–$300 per year. Because the underlying home and auto policies absorb the first layer of claims, each additional $1 million of umbrella coverage usually adds only about $75–$100 annually. That makes higher limits relatively inexpensive. Your actual premium depends on the number of homes, cars, and drivers you have, your claims history, and risk factors like a pool, boat, or rental property. Insurers also require you to carry minimum liability limits on your auto and home policies first. Call 1-800-MEDIGAP at 1-800-633-4427 to learn more.
What affects your premium?
Several factors move the price: the coverage limit you choose, the number of vehicles and properties you own, household drivers (especially teens), and any high-risk features like swimming pools, trampolines, watercraft, or landlord activity. A history of liability claims raises the cost, while bundling umbrella coverage with your existing home and auto carrier often earns a discount. Insurers also require underlying liability minimums — commonly $250,000–$300,000 on auto and a set amount on home — before they'll issue an umbrella policy. Because every household differs, comparing quotes is the only reliable way to know your cost.