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Ask an Agent: What is a Personal Umbrella Policy?

Published: July 2016

A personal umbrella policy may provide additional liability protection if you're found legally responsible for another person's injuries or damage to their property. If a judgment against you exceeds the liability limits of an underlying policy, such as auto or homeowners insurance, a personal umbrella policy may help provide an additional layer of coverage.

Watch the video below to hear Allstate agency owner Rich Gallo tell the story of a customer who was found responsible for damages after she lost control of her vehicle and struck two other cars, and how her umbrella policy helped her resolve the situation.

Video Transcript

Hello. My name is Rich Gallo, and I'm an Allstate agency owner in Wayne, Pennsylvania. I'm here to talk about personal umbrella policies.

A personal umbrella policy offers liability coverage beyond the limits of an underlying policy, like car insurance or homeowners insurance. If you're found legally responsible for injuring someone else or damaging their property, an umbrella policy may help pay damages you owe. The coverage only kicks in once the limits of your underlying insurance policy are reached.

I remember one customer — she was a retired business owner who had a personal umbrella policy on top of her car insurance.

One day she was in a serious accident. She lost control of her car, swerved to avoid a school bus, and collided with two other vehicles.

She was seriously injured, as were two other people. Fortunately, everyone made a full recovery.

But she was held responsible for significant damages — about $900,000.

She had liability coverage through her auto insurance. But those coverage limits were $100,000 for property damage and $500,000 per accident for bodily injury. So, that wasn't enough to cover everything she owed. That's where her personal umbrella policy came in. It gave her an additional $1 million in liability coverage, which helped her avoid paying out of pocket for the damages.

A little while after she got out of the hospital, she walked into my office. She said to me, "Now I know what I've been paying for. If I didn't have that umbrella policy, I would've been bankrupt."


An Allstate agent can answer coverage questions and help you find ways to protect what matters most.

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This content is for informational purposes only and may not be applicable to all situations.

Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Allstate Insurance Company, Allstate Indemnity Company, Allstate Fire and Casualty Insurance Company, Allstate Property and Casualty Insurance Company, Northbrook, IL. © 2020 Allstate Insurance Company, Northbrook, IL.
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