Umbrella Insurance

Yes. Renters liability limits are often too low for major claims.

Umbrella policies are usually affordable for the protection provided.

Yes. It can cover legal defense and settlement costs.

Business liability typically requires a separate policy.

Turnaround varies by carrier and underlying policies. We will confirm timing once we review your details.

Yes. We can include rental exposures in the umbrella policy.

Most carriers require higher auto and home limits before adding umbrella.

Property and liability insurance refers to the two fundamental pillars of personal insurance protection. Property insurance covers physical assets — your home, vehicle, or personal belongings — against damage, theft, or destruction. Liability insurance covers the financial cost when you are legally responsible for injury or damage to others. A standard homeowners or renters policy bundles both: Coverage A through D handle property, while Coverage E and F handle liability. A personal umbrella policy extends the liability layer by adding $1 million or more in coverage above your existing home and auto liability limits — providing protection for serious claims that could otherwise exhaust your underlying policies.

Excess liability coverage sits above your primary insurance policies and pays after those limits are exhausted. A true excess liability policy follows the exact terms of the underlying primary policy — it provides no additional coverage beyond extending the dollar limit. A personal umbrella policy is broader: it can cover situations not included in the underlying policies, such as personal injury liability (libel, slander, false arrest) and some international incidents. Dragon Insurance writes personal umbrella policies from $1 million to $5 million that provide the broader protection most homeowners need, often for $300 to $500 per year.

Consider a serious auto accident that results in a $750,000 judgment. Your auto policy's liability limit pays the first $300,000, leaving $450,000 unpaid. A $1 million umbrella policy would pay the remaining $450,000, leaving you with $0 out of pocket. Without an umbrella policy, that $450,000 gap would come from your own savings, home equity, or future wages. This is an illustrative example; actual claims, limits, and outcomes vary by case and carrier.

Most umbrella carriers require minimum liability limits on your underlying policies before they will issue a policy. Typical minimums are $250,000/$500,000 bodily injury liability (or $300,000 combined single limit) on auto insurance, $300,000 in personal liability (Coverage E) on homeowners insurance, $300,000 in marine liability on boat or watercraft policies, and $300,000 in liability per property on landlord or rental property policies. If your current limits fall below these thresholds, Dragon Insurance can help you raise them before adding an umbrella policy.

According to 2026 data from NerdWallet, most households are quoted $300 to $600 per year for $1 million in personal umbrella coverage. Each additional $1 million in coverage typically adds $75 to $150 per year. Actual cost depends on the number of vehicles and drivers in your household, whether you own a pool or trampoline, and whether you own rental property.

Yes, in many cases. Beyond paying claims that exceed your underlying policy limits, many umbrella policies also cover certain claims that standard auto and homeowners policies exclude entirely, such as libel, slander, and defamation claims, false arrest or malicious prosecution claims, and certain invasion of privacy claims. Coverage for these extensions varies by carrier, so confirm the details with your agent.

Most umbrella carriers require you to carry your home and auto policies with the same company that issues the umbrella, or to meet their minimum underlying limit requirements. As an independent agency, Dragon Insurance can often place your umbrella policy with a separate carrier even if your home or auto insurance is already placed elsewhere. Call us to discuss your specific situation.