The cost of personal umbrella liability insurance depends on a variety of factors, including your location, coverage limits, lifestyle and claims history. Umbrella liability insurance on its own is relatively cheap, averaging between $150 and $300 a year for a $1 million policy.
How Factors Influence the Cost of Your Umbrella Liability Insurance
All of the different factors influencing your umbrella liability insurance rates boil down to your risk of filing a claim.
Depending on where you live or drive, your umbrella insurance rates could change due to the claims history in your area. If those around you have a long history of filing liability claims, you could find yourself paying higher insurance rates.
Your lifestyle is one of the biggest factors influencing your liability insurance rates. This is because liability primarily concerns your interaction with others. If you have a lot of people over at your home on a daily basis, you may pay more for umbrella liability insurance—as well as need higher limits—than those who don’t. This also includes if your home has certain amenities such as a pool or hot tub. These can present a range of dangers including drowning and even death that could be covered under your personal umbrella liability insurance policy.
Since umbrella liability insurance applies to all of your liability coverages, the type of car you drive and your career can also affect how much you pay for umbrella liability insurance.
As you would expect, higher limits generally mean higher insurance premiums. The more coverage you have, the more you will have to pay for umbrella liability insurance. It is important to speak with an insurance agent and get the right amount of umbrella liability insurance to completely protect yourself and your family. You can also choose to change your deductible. A higher deductible can save you money on monthly premiums, but it also means paying more out of pocket if you have to file a claim.
While the claims history of those around you matters, your own personal claims history matters more. If you have had liability claims in the past—whether on your auto insurance, home insurance or more—you could face higher umbrella insurance premiums.
Speak with an insurance agent about saving money on your umbrella liability insurance policy without sacrificing important coverage on your policy.