Personal Umbrella Policies are available to add additional limits of liability protection over existing policies you may already have in force.
As a general rule, an insurance carrier will typically include one home and two vehicles (with two drivers) under their minimum baseline price. Any additional underlying policies, risk variables, or increased umbrella limits will affect the umbrella premium.
Typical umbrella liability limits start at $1,000,000 and increase in $1,000,000 increments, up to a total $5,000,000 limit. Higher limits are available, but very few carriers offer them.
Here's a scenario:
A family of four, with a homeowners policy, an auto policy, and a boatowners policy decide to purchase a $1,000,000 umbrella policy. Each underlying policy has its own liability limit. By adding the $1MM umbrella policy, each policy's liability limit is now increased by $1,000,000, respectively:
A few important caveats to consider:
Not all carriers will extend their umbrella limit over all underlying policies.
Most carriers who write umbrellas want the underlying home & auto policies to be written with them as well.
Some, or all, underlying policies may be subject to a self retention limit (essentially a special deductible before the umbrella kicks in).
Risk factors such as a homeowner having a pool or trampoline, or an auto policyholder having young drivers or high performance automobiles, can significantly increase the cost of an umbrella policy.