Standalone Umbrella Insurance: Your Comprehensive Guide

Standalone umbrella insurance is a policy that offers unique and expansive coverage. Learn more about what umbrella insurance can do for you.

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Standalone Umbrella Insurance: Your Comprehensive GuideStanalone Umbrella Insurance: Your Comprehensive Guide

Remember how Road Runner could get out of every sticky jam? It didn’t matter if Wile E. Coyote rerouted paths, threw dynamite, or jerry-rigged some insane device: Road Runner always got off scot-free. 

In a perfect world, that’s how insurance would work too. Sadly, this isn’t a perfect world, and complete and total coverage is pretty hard to find. That said, a standalone umbrella insurance policy does its best to offer near-comprehensive coverage for life’s misadventures. It’s a neat and tidy way to keep you, your family, and your assets safe — dropped anvil or not!

What is Standalone Umbrella Insurance?

Imagine a raging storm with lightning, thunder, the works. (Stay with us.) Fortunately, you, your loved ones, and all your things stay dry in a super sturdy tent. It’s pretty cozy in there, right? We’ll spell it out for you: in this analogy, the tent is your traditional insurance policy. 

But just when you thought all was safe, the winds kick up and knock over your tent. If not for a super-charged umbrella, you’d be completely exposed. 

Though we’re hoping you’d have access to more than just an umbrella in the face of such a storm, umbrella policies do exist — and they really can be lifesaving. 

Conventional policies tend to only cover certain, named events, and they only offer liability coverage up to a certain point. This means that if something happens outside of one of the named events, you won’t be covered. That’s when umbrella insurance comes into play. 

The Key Components of Standalone Umbrella Insurance

While every policy differs, here is what you can expect to find in your umbrella policy:

  • Coverage limits: High, high, high limits that kick in only after either (a) you max out a traditional insurance policy or (b) a specific incident occurs. For example, some umbrella policies cover watercraft rentals. If you are being sued for a rental boat accident, the umbrella policy would automatically step in. 
  • Liability scenarios covered: There are many coverage exclusions in your traditional policy that are actually covered by umbrella insurance. There’s not enough space to address every scenario here, but the following are usually covered: damage to another person's property; another person’s injuries or medical bills; defamation; libel; false arrest; imprisonment; and landlord liability.
  • Policy exclusions: While umbrella coverage is pretty comprehensive, not everything gets covered — specifically high-risk or illegal activities. So don't take up competitive skydiving expecting your umbrella policy to  automatically cover you!

As we always say, read through your paperwork and check the T&Cs so you’ll know exactly what you’re getting.

The Perks of Standalone Umbrella Insurance

Now for the good stuff — and by that we mean the perks of having an umbrella policy!

First off, there are higher coverage limits, which we mentioned above. The goal of umbrella insurance is to cover a person's assets in their entirety, which means that coverage must extend beyond a person's estimated net worth. Typically, umbrella policies start at one million dollars in coverage, but this can extend well beyond, depending upon the need. That’s much, much more than your standard auto policy or general liability coverage. 

This insurance offers broader protection against various liability scenarios. Did your dog bite a friend? Was a lie you told about your neighbor published in The New York Times? Did you back into a Tesla, resulting in some minor but expensive injuries? These incidents would all be covered by an umbrella policy.

With standalone umbrella insurance, there is minimal impact on your existing insurance, since an umbrella policy is meant to exist alongside those policies. It is an end-of-the-line option that doesn’t affect how your other policies function on the day-to-day.

And did we mention that standalone umbrella insurance usually isn’t that expensive? Policies average around a couple hundred bucks per year, which is pretty low considering the enormous coverage limits. This means that it’s an effective safety net for most any issue you encounter.  

Who Needs Standalone Umbrella Insurance?

Since these policies are so broad and offer such sweeping protection, plenty of people can benefit from one of these insurance policies. While you’ll need to take stock of your situation and budget, here are just a few examples:

  • Property owners
  • High-net worth individuals
  • Frequent international travelers
  • Rental property owners
  • Public figures
  • Adventure sports enthusiasts 
  • Parents of teenagers (especially young drivers)

Though if you own a business, you’ll want to look into commercial umbrella insurance.

Find Umbrella Insurance to Your Policy With Marble

Trying to decipher different umbrella policies? Marble can help! With Marble, you can compare options, get quotes, and organize your documents — all while earning rewards. Sign up today!