While never required by law, umbrella insurance can be incredibly valuable for individuals and business owners with a lot of assets or those with a significant risk of being sued. This can include households with dogs that might bite, swimming pools that could cause accidents and teenage drivers who pose higher risks.
Umbrella insurance provides additional coverage beyond your underlying insurance policies, like auto and homeowners insurance. It can protect you financially from bodily injury and property damage liability claims, as well as legal expenses beyond your usual insurance limits if you find yourself in a lawsuit.
For example, if you're involved in an auto accident that causes $500,000 worth of bodily injury damages, but your auto insurance policy has a $300,000 limit for these types of damages, an umbrella insurance policy would cover the remaining $200,000. Otherwise, your savings and future earnings could be used to cover the difference.
Here, CNBC Select rounds up the best umbrella insurance providers based on availability, customer satisfaction and maximum limits. (See our methodology for more information on how we made this list.)
Best for customer satisfaction
Travelers Umbrella Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
$10 million
App available
Yes
Policy highlights
A Travelers Umbrella Insurance policy comes with all of the protection you need, covering you at home and abroad. These umbrella policies include coverage for libel, slander, and defamation of character, and legal defense costs.
Pros
- High enough coverage options for most typical families
- High ratings for customer satisfaction
Cons
- Quotes and purchasing not available online
Who's this for? Travelers can be a good fit for many families and business owners, with $1 to $10 million in umbrella insurance coverage available. It can also help provide coverage for liabilities that happen outside of the U.S.
Standout benefits: Travelers is highly rated for its underlying policies, homeowners insurance and auto insurance, earning high rankings from J.D. Power for both types of insurance. Additionally, a below-average complaint index helps Travelers stand out.
Best for bundling coverage
American Family Umbrella Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Undisclosed
App available
Yes
Policy highlights
American Family has a wide variety of umbrella policies available, including personal coverage, commercial coverage and coverage for ranches and farms. It's also highly rated for auto and home insurance.
Pros
- Wide variety of coverage options available.
Cons
- Not available in all 50 states.
Who's this for? American Family has strong options for auto and homeowners insurance in addition to umbrella insurance. American Family also offers a unique umbrella insurance policy for those with a farm or ranch.
Standout benefits: American Family's umbrella insurance offers an opportunity to bundle coverage, making it a top choice for those who want simplicity.
Best for high-net-worth families
Chubb Masterpiece Excess Liability Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
$100 million
App available
Yes
Policy highlights
Chubb's Excess Liability Insurance offers high coverage limits with a strong track record of customer service and satisfaction. It offers coverage worldwide and at home, and includes defense costs and legal counsel in lawsuits.
Pros
- High coverage limits
- Strong scores for customer satisfaction
Cons
- Quotes and purchasing not available online
Who's this for? Chubb's excess liability insurance is a strong choice for those with lots of assets to protect. It stands out for those who employ staff in their homes, as Chubb provides liability coverage related to employment practices for residential staff.
Standout benefits: With up to $100 million in coverage available, Chubb is a top choice for those who may need more than the typical $10 million limit available through other umbrella insurance policies. It covers defense costs for most lawsuits and extends coverage worldwide.
Best for military families
USAA Umbrella Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
$5 million
App available
Yes
Policy highlights
While only available to military members, veterans and their families, USAA's Umbrella Insurance could be a good fit for those eligible who already have auto insurance policies through the company (carrying an auto policy is a requirement for this umbrella insurance). Its auto and homeowners insurance offerings are highly rated for customer claims satisfaction.
Pros
- Auto insurance through USAA is required, but other insurance companies may be used for other coverages.
- High ratings for customer satisfaction
Cons
- Only available to military members and their families
Who's this for? USAA umbrella insurance is only available to those who have served in the U.S. military and their families. However, those who are eligible may find that USAA's coverage stands out in terms of customer service.
Standout benefits: USAA is consistently one of our top picks for auto insurance, which anyone getting umbrella insurance will need to get through the company (except for in New York, Pennsylvania or Hawaii).
More on our top umbrella insurance companies
Travelers
Travelers has been in the insurance business for more than 165 years and continues to be highly rated for customer satisfaction and financial strength. It boasts an A++ financial strength rating by AM Best.
Types of umbrella insurance available
Personal and commercial
NAIC complaint index (Average is 1)
0.79, lower than expected
Policy requirements
Not disclosed
American Family
American Family has been insuring families for 90 years, garnering a reputation for strong coverage and excellent customer service.
Types of umbrella insurance available
Personal, commercial, farm and ranch
NAIC complaint index (Average is 1)
0.79, lower than expected
Policy requirements
Not specified
Chubb
Chubb has been named one of CNBC Select's top picks for high-net-worth families for homeowners insurance, flood insurance and jewelry insurance. That's for good reason — the company has consistently high marks for customer service and satisfaction. Chubb is also rated highly for financial strength by AM Best.
Types of umbrella insurance available
Personal and commercial
NAIC complaint index (Average is 1)
0.24, lower than expected
Policy requirements
Not disclosed
USAA
USAA is consistently a top contender in the insurance space, despite only being available to those who are currently serving in the military, veterans and their families. Its homeowners insurance and auto insurance have both been highly rated for customer satisfaction by J.D. Power.
Types of umbrella insurance available
Personal and commercial
NAIC complaint index (Average is 1)
1.79, higher than average
Policy requirements
Requires auto insurance policy, minimum limits on auto, homeowners and other types of insurance apply
FAQs
What does umbrella insurance cover?
Umbrella insurance can add to your liability coverage, going beyond the limits of your auto insurance, homeowners insurance or other policies and help if you're facing a lawsuit for unintentional damages. It can provide coverage for legal defense costs that you'd otherwise be on the hook for, including things like attorney fees.
Who needs umbrella insurance?
Anyone with assets to protect from legal rulings could benefit from umbrella insurance. Some situations could put you at higher risk of a lawsuit, including:
- Owning a pool or trampoline
- Frequently having guests or hosting parties
- Volunteering or coaching children's sports
- Having young drivers
- Being a landlord
If you find yourself in one of these positions, having umbrella insurance could provide some peace of mind.
What is not covered by umbrella insurance?
Since umbrella insurance is designed to cover damages to others, it won't cover your property or belongings. Umbrella insurance also won't cover intentional acts.
Under a personal umbrella insurance policy, business damages or property won't be covered. Generally, this includes businesses operated out of your home.
How much umbrella insurance do I need?
Generally, umbrella insurance coverage should equal your taxable assets, including things like investments, homes beyond your primary residence and other assets.
Bottom line
Umbrella insurance can help cover costs beyond the liability limits of your auto, homeowners or other insurance to protect your assets if you're found responsible for damages to others. For the best umbrella insurance coverage, consider the underlying policy requirements, the quality of those underlying policies, the company's financial strength, and any specific features you may need.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best umbrella insurance companies, we compiled over 100 data points on more than a dozen insurance companies offering umbrella insurance policies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best umbrella insurance companies.
Our methodology
To determine the best umbrella insurance companies, CNBC Select analyzed dozens of insurance companies offering the coverage and compared them based on customer service ratings, policy requirements, limits, types of umbrella insurance available, quote availability and state availability.
While narrowing down the best umbrella insurance companies, we focused on minimum and maximum limits, and service ratings from JD Power's Overall Customer Satisfaction Index Rankings for homeowners insurance and auto insurance Overall Customer Satisfaction Index Rankings, which are often prerequisites for an umbrella insurance policy. We also considered complaint index data from the National Association of Insurance Commissioners and financial strength ratings from A.M. Best. Finally, we considered the nationwide availability of umbrella policies and any requirements for underlying policies.
From there, we sorted our recommendations by the best overall and runner-up, best for military families and best for high net worth families.
Note that the premiums and policy structures advertised for umbrella insurance companies are subject to fluctuate in accordance with the company's policies.
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