An umbrella policy doesn't replace your auto and home liability coverage - it extends it. Before the umbrella pays anything, your underlying policy must be exhausted first. This is why carriers require minimum limits on your existing policies before they'll write an umbrella.
Required Underlying Limits
| Policy | Minimum Required for Umbrella |
|---|---|
| Auto liability | $250,000-$300,000 per person / $500,000 per accident |
| Home liability | $300,000 |
| Boat / Motorcycle | Qualifying limits on each vehicle |
The Cost of Raising Underlying Limits
The premium increase from raising your underlying limits to qualify for an umbrella is typically modest, especially compared to the total savings from having the umbrella in place. Running the numbers with your agent before committing gives you the complete picture.
Recreational Vehicles Count Too
Recreational vehicles, motorcycles, and boats that you own also need to be listed with your umbrella carrier, with qualifying underlying liability limits on each. A boat with minimal marine liability coverage is a gap in your overall umbrella protection.
Review your underlying policy limits every few years as your assets grow. The umbrella limit that made sense at 35 may be inadequate at 50 when your net worth has increased, and raising the umbrella limit is usually inexpensive. The NC Department of Insurance recommends that North Carolina households review umbrella coverage as part of any annual insurance audit. Start an umbrella insurance quote or talk to an IronHaven agent about your current liability exposure in Wake Forest or anywhere in North Carolina.
