Does an umbrella pay before my auto insurance?

No. For a claim both cover, your auto or home policy pays first, up to its liability limit. The umbrella pays the covered amount above that.

What happens if I lower my auto liability limits after buying an umbrella?

You could create a gap. If your umbrella expects higher limits underneath, you may have to pay the difference yourself. Check with me before lowering anything.

Does an umbrella include uninsured motorist coverage?

Not automatically. It depends on the umbrella. In Florida, an umbrella insurer must make it available if you ask in writing, up to the limits the law sets (Fla. Stat. 627.727(2)).

Does an umbrella cover my renters policy too?

An umbrella can sit on top of a renters policy's liability coverage, the same way it sits on a homeowners policy.

How an umbrella sits on top of your auto and home — From Elona’s desk

Think of your insurance as layers. Your auto policy and your home or renters policy pay first, up to their liability limits. The umbrella sits on top and pays the covered part of a claim that goes past them.

That’s the simple version. The details are where people get caught out, so here’s how the layers actually fit.

The order things pay in

Say you cause a serious car accident and the injured people’s claims are more than your auto policy’s bodily injury limit.

Your auto policy pays first, up to its liability limit, and defends you.
The umbrella pays next, for the covered amount above that limit, up to the umbrella’s own limit.
Anything above the umbrella is yours.

The same thing happens at home. If a guest is badly hurt on your property, your homeowners or renters liability pays first, and the umbrella picks up above it.

Why your underlying limits matter

An umbrella is written on the assumption that your auto and home policies carry certain liability limits. Umbrella insurers usually set those as a condition of the policy.

If your underlying limits are lower than the umbrella expects, there’s a gap. The umbrella may only pay above the amount it expected your auto or home policy to pay, and the gap in between is yours. This is why I never lower someone’s auto or home liability without checking their umbrella first.

Every car and home needs to be in the picture

An umbrella usually lists the policies underneath it. If you buy another car, a boat, a golf cart or a rental property and it isn’t insured the way your umbrella expects, the umbrella may not respond the way you think. Tell me about new vehicles and properties when you get them, not when there’s a claim.

When the umbrella goes further than your other policies

According to the National Association of Insurance Commissioners, an umbrella may cover some liability claims that your primary policies exclude. When that happens there’s nothing underneath to pay first, so many umbrellas have you pay a set amount before they start. The policy may call this a retained limit or a self-insured retention. It’s on the policy, and worth reading.

Defense costs

Your auto and home policies normally pay to defend you in a covered lawsuit. An umbrella can pay defense costs too. Ask whether those costs come out of the umbrella’s limit or are paid on top of it. Policies differ.

Florida

In Florida: uninsured motorist coverage

Florida requires uninsured motorist coverage to be offered on auto policies, and you can reject it or choose lower limits in writing. An umbrella is different. Under Fla. Stat. 627.727(2), the auto-policy rules on uninsured motorist limits don’t apply to a policy that doesn’t provide primary auto liability, which describes an umbrella. But the umbrella insurer must make uninsured motorist coverage available if you ask in writing, up to the limits the statute sets.

So if you want your umbrella to protect you from drivers with little or no insurance, you have to ask for it. Why uninsured motorist coverage matters.

Illinois

In Illinois: uninsured motorist coverage

In Illinois, your auto policy’s uninsured motorist coverage is included at the same amount as your bodily injury liability limits, unless you reject the higher amount in writing (215 ILCS 5/143a-2). Whether your umbrella adds uninsured or underinsured motorist coverage on top depends on the umbrella’s own wording. Ask, and get the answer from the policy itself.

Good to know

Line them up once a year. At each renewal, check that your auto and home limits still match what your umbrella requires.
Changing insurers? Make sure the umbrella still recognizes the new underlying policies.
Household members matter. A new driver in the house affects your auto policy and your umbrella.
New to umbrellas? Start with What an umbrella policy is.

Want me to line yours up?

Upload your auto, home and umbrella declarations pages at /quote/, or send them to me. I’ll check that every layer matches, show you any gaps, and explain your options in plain words.

Talk to Elona