What it does
If you are found responsible for an injury or damage that exceeds your auto or home liability limit, the umbrella pays the excess, up to its limit. It also covers some claims the underlying policies exclude — certain personal injury claims like libel and slander, for example — and it pays defense costs, which can be substantial on their own.
The test
You are a candidate if any of these is true: a teen or young driver in the house; a pool, trampoline or dock; a boat or personal watercraft; a rental property; a dog; a visible profession or public role; or simply assets and income you would rather not expose to a judgment. If two or more are true, it stops being a question.
Underlying limits
An umbrella sits on top of your other policies, so it requires them to carry minimum limits — often $250,000/$500,000 bodily injury on auto and $300,000 liability on home. If your current limits are lower, they are raised as part of adding the umbrella; that increase is usually most of the cost.
What it costs
For a typical household, a $1,000,000 umbrella is often priced in the low hundreds of dollars a year, more with young drivers, boats or rentals. Each additional million is less than the first. Carly can quote it alongside the auto and home review so the underlying limits line up.
This guide is general information about insurance in Michigan, not advice about a specific policy. Coverage depends on the policy’s terms, limits, exclusions and eligibility, and a request does not bind or change insurance.