Umbrella Insurance, sometimes called “personal umbrella insurance”, is a type of personal liability insurance that provides an extra layer of affordable liability protection in the event of an accident.

Adding Umbrella Insurance protects you and your family by covering additional damage costs that extend beyond the limits of your homeowner’s, auto, or watercraft policies. This additional coverage ensures your personal assets are safe.

Considering adding an Umbrella Insurance policy? Here are some answers to frequently asked questions.


What does it cover?

The primary purpose of this coverage is to protect you if you’re found liable for causing bodily injury to others or damage to their property. It also protects against incidents involving slander, libel, false arrest, and invasion of privacy, as well as any legal defense costs – even if you’re not found liable. It protects not just you as a policyholder, but also other family members within your household.


What does it not cover?

Umbrella insurance does not cover damage to your own property, nor does it cover any deliberate damage to others’ property caused by anyone on the policy.


How does it work?

Think of it as a “supplement” to your core coverage. Let’s say you have liability limits of $250,000 through your auto and homeowners insurance and you’re sued for $1,000,000. The umbrella insurance would kick in after legal fees and costs exceed $250,000 – which can happen staggeringly quickly – protecting you against having to pay the remaining amount out of pocket.


How do you know if you need it?

You might need an umbrella policy if you: own a car, own a home, want to protect your assets against a lawsuit or judgment, or want to protect your retirement savings or future earnings. Accidents happen every day – umbrella insurance is an affordable way to protect the assets that you’ve worked hard to acquire.


How much does it cost?

For the amount of protection it offers, liability insurance is surprisingly affordable. The decision on whether or not to get it calls for weighing the risk of what you stand to lose – current assets as well as the potential loss of future income or earnings. It’s especially affordable if you already have a policy with the same insurance company. Are you already a California Casualty member? Call us for an Umbrella Insurance quote today!


Does it cover car rentals?

Your automobile policy is the primary coverage for any damage or injuries you might cause while driving a rental car. However, if the cost of damage or any lawsuit fees is greater than your auto insurance liability limits, that’s when umbrella insurance protection would provide you further protection.


Does it cover rental property?

If you’re a renter and have renters insurance, an umbrella policy can extend your liability protection beyond the limits of your primary policy. If you’re a landlord, this coverage can help protect you from lawsuits by tenants, their guests, or other third parties.

If you are still on the fence about Umbrella Insurance, here’s what you can do. Add the value of your home, significant assets, and any investment portfolios or retirement savings accounts, and determine how much liability coverage you have from your home and auto policies. Do your current policies cover your assets?

If the answer is no, it may be time to consider an Umbrella Insurance Policy.

Find out more about what we have to offer by calling us at 877.652.2638, or email us at



This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or

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