Personal umbrella policy
Umbrella insurance in Washington
Umbrella insurance — a personal umbrella policy — adds a layer of liability coverage, usually $1 million or more, above your home and auto policies. If you're sued after a serious car accident or an injury at your home and the damages exceed your underlying limits, the umbrella pays the rest, up to its own limit.
How a personal umbrella policy works
Short answer: The umbrella pays only after the liability limit of the underlying home, auto, boat or landlord policy is exhausted. It also may cover some claims the underlying policies don't, such as certain libel or slander suits, subject to its own terms.
An example
A driver with $250,000 of bodily-injury liability causes a crash; the injured person's damages are judged at $900,000. The auto policy pays $250,000. A $1 million umbrella pays the remaining $650,000 — instead of the driver's savings, home equity or future wages.
Who needs umbrella insurance?
Short answer: Anyone whose assets or future income exceed their home and auto liability limits, and anyone with higher-risk exposures — teen drivers, rental properties, a pool or trampoline, a boat, or a dog.
- Homeowners with meaningful home equity or savings
- Households with a teenage driver
- Landlords with one or more rentals
- Owners of a pool, trampoline, dock, boat or dog
- People with a public profile — coaches, volunteers, board members, active on social media
Not sure? Use the umbrella sizer — it doesn't quote a price, it shows how your exposures stack up.
$1 million vs. $2 million umbrella coverage
Short answer: Most households start at $1 million; many with significant assets, several drivers or rental properties choose $2 million or more. The added cost of each extra million is typically smaller than the first.
| Household | Typical starting point |
|---|---|
| Homeowner, two drivers | $1M |
| Homeowner with a teen driver | $1M–$2M |
| One or more rental properties | $2M |
| Significant investment assets or business ownership | $2M+ |
What umbrella insurers require underneath
Short answer: Umbrella policies require minimum liability limits on the underlying home and auto policies, which is why the umbrella is usually set up together with them.
Common requirements are around $250,000/$500,000 auto bodily-injury limits and $300,000 home liability, but each carrier sets its own. See home and auto bundles.
Frequently asked questions
What is PUP insurance?
PUP stands for personal umbrella policy — the industry term for umbrella insurance. They're the same thing.
How much does umbrella insurance cost?
The cost depends on the limit, how many homes, cars and drivers it sits over, and the household's exposures. It is usually modest relative to the coverage, which is why it's worth pricing.
Does an umbrella cover my business?
A personal umbrella generally excludes business activities. Business liability needs commercial coverage.
Keep exploring
- Home + auto bundleBundle home and auto insurance with a local Federal Way agent. When bundling saves money, when it doesn't, and how home + auto + umbrella work together.
- Home insuranceWhat Washington homeowners insurance covers — dwelling, belongings, liability, living costs — and what it doesn't. Get a home insurance quote from a Federal Way agent.
- Auto insuranceWashington auto insurance explained: the 25/50/10 legal minimum, why most drivers need more, underinsured motorist and PIP, and how to get a car insurance quote locally.
- Landlord insuranceLandlord insurance for Washington rental owners: the building, lost rent, and liability — and why a homeowners policy stops covering a home once you rent it out.
- Umbrella sizer
- Do I need umbrella insurance?A plain-language test for whether you need umbrella insurance: assets, future income, teen drivers, rentals, pools, boats and dogs.
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