Umbrella Insurance

What it is

Extra liability coverage on top of your home + auto. Kicks in when those run out. $1-2 million coverage typically $150-400/year.

When seniors need it

• Net worth $500K+ — assets at risk if sued.
• Pool / hot tub at home.
• Trampoline / playset for grandkids.
• Drive frequently — auto liability rare to cover serious injury.
• Rental property owner.
• Volunteer board member at non-profit.
• Dog breeds insurance flags.
• Active social media — defamation lawsuits.

Cost

• $1M coverage — $150-300/year.
• $2M — $200-400/year.
• $5M+ — for high-net-worth.
• Cheapest insurance per dollar of coverage.
• Cheaper if bundled with home + auto.

What it covers

• Bodily injury you cause (car accident).
• Property damage you cause.
• Personal injury (libel, slander, false arrest).
• Legal fees in lawsuits.
• Worldwide coverage.
• NOT covered: business liability, contracts, intentional acts.

Where to buy

• Same insurer as home + auto = bundle discount.
• USAA, State Farm, Liberty Mutual, Allstate all offer.
• RLI Insurance — sometimes cheapest standalone.
• Need: minimum auto liability ($250K-$500K) + home liability ($300K).
• If under those — raise auto/home first.