Should You Get an Erie Insurance Umbrella Policy?

Erie Insurance policyholders who have reached the maximum liability limits may qualify for umbrella insurance. But what is it and how does it work?insura
Written by Kathryn Mae Kurlychek
Reviewed by Kathleen Flear
Erie Insurance offers umbrella coverage to certain customers, helping them create an added layer of protection by extending their coverage limits on their existing policy or policies. 
As the age-old saying goes: when it rains, it pours. That’s why so many insurance companies—including Erie—offer umbrella insurance to mitigate the downpour. Sometimes called “personal catastrophe
liability coverage
,” this type of insurance expands coverage to a wider variety of incidents, and with higher limits. 
In this article, we’ll cover what’s typically included in an umbrella policy with Erie Insurance—and whether or not it’s the right investment for you. 
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What is an umbrella insurance policy? 

As its name implies, umbrella insurance helps cover a greater amount of incidents than your typical
homeowners
or
car insurance
policy. But what exactly does it help protect, and how does it do this? 
Well, primarily, umbrella insurance expands your coverage by extending your
personal liability insurance
limits on your auto insurance or homeowners insurance policy. Umbrella insurance can also cover extras that a standard liability policy typically won’t, such as mental anguish.
An umbrella policy’s typical
liability coverage
options start around $1,000,000—but it can be raised in million-dollar increments to as high as $5 or $10 million, depending on your insurer. 
Since the average Erie homeowners or auto insurance policy is capped at around $500,000, even a basic umbrella policy can essentially double your liability limits—all for an average annual price of just $150 to $300
The catch? Umbrella insurance will only kick in once you’ve hit the limits of your existing homeowners or auto insurance policy. In other words, umbrella insurance picks up where your homeowners or auto insurance policy leaves off. 

How does umbrella insurance work with Erie Insurance? 

Erie Insurance offers umbrella coverage to policyholders who have met the required liability limits on their home or auto insurance policy—and they will typically charge $20 or less per month per extra $1 million in coverage. 
With umbrella insurance from Erie, you’re covered in the following circumstances:
  • Damage that exceeds your auto insurance or homeowners insurance policy limit
  • Covered claims that are brought against you by another party

What does Erie umbrella insurance cover?

Now that you have a better grasp on what umbrella insurance is and what a policy generally covers, it’s time to take a closer look at what an Erie umbrella policy can protect you from. With umbrella insurance from Erie, you’ll be covered in situations that most “regular” liability policies exclude, such as:
  • Lawsuits against slander, defamation, or invasion of privacy
  • Defense costs
  • Injuries to other people if you're at fault
  • Damage to other people's property if you're at fault
Erie’s umbrella coverage will also extend to medical expenses and repair bills for other people that go beyond the coverage limits of your standard homeowners or auto insurance policy.

What it won’t cover

Umbrella insurance can provide extra peace of mind by extending your coverage beyond the scope of your average insurance policy—but unfortunately, it can’t cover everything out there. There are certain exclusions to umbrella coverage, although they can vary among insurers. With an Erie umbrella policy, the following exclusions apply: 
  • Coverage for your own injuries or property damage
  • Coverage for intentional harm
  • Coverage for business liability
  • Anything that’s already covered by a legal contract
It’s important to keep these exclusions in mind when shopping for the right umbrella policy. 

How much does Erie umbrella insurance cost? 

According to their website, Erie Insurance charges most customers just $20 or less per month for umbrella insurance. 
But exactly what you pay will vary from person to person based on risk factors, like your claims history, location, and more. On average, Erie customers pay between $200 and $250 per year for umbrella insurance. For an extra $1 million in coverage, that’s a fairly inexpensive going rate! 

Who can buy a personal umbrella policy from Erie Insurance? 

Customers who already hold an existing car, home, or renter’s insurance policy with Erie may qualify for additional coverage in the form of umbrella insurance, so long as they have already hit the maximum liability limit on their policy. 
If you don’t already have a policy with Erie, you’ll have to sign up for one before you can potentially qualify for umbrella insurance with the company—but those interested should know that insurance coverage with Erie is only available to residents in the following twelve states:
Erie insurance coverage is also available to residents who live in the District of Columbia (Washington, D.C.). 

Is an Erie personal liability umbrella policy worth it? 

If you’re undecided as to whether or not umbrella coverage with Erie is worth it for you, don’t worry—below, we take a closer look at the pros and cons. 

Pros

…it’s affordable. The average Erie customer pays between $200 and $250 per year for umbrella insurance. That’s as little as $16 to $20 per month!
…it extends your coverage limits. If you live in an area where certain costs (such as medical care) are especially high, the added coverage that umbrella insurance offers can protect you from paying steep out-of-pocket costs following an accident. 
…it protects you in circumstances standard policies won’t cover. In lawsuits for invasion of privacy, slander, or even mental anguish, you likely won’t be covered by a standard insurance policy—but with umbrella insurance, you will be.

Cons

…it costs more. Despite the fact that umbrella coverage can be added to your policy for a relatively cheap price, you’ll first need to meet the maximum coverage limits of your existing home or auto insurance policy before you can qualify.
…not everyone can get it. Your eligibility for umbrella insurance isn’t only dependent on maxing out your policy’s limits. Depending on where you live, your prior claims history, and other risk factors, you may not be eligible for umbrella insurance.
…it won’t cover your own injuries or property damage. Umbrella insurance can help cover the cost of injuries or damage you have caused to another party—but it won’t help cover your own expenses. If you’re most interested in protecting your own belongings, investing in added coverages, like
collision
or
comprehensive coverage
, might be a better option. 

The bottom line

At the end of the day, adding umbrella coverage to your existing insurance policy is a personal choice. If you already carry high liability limits, an umbrella insurance policy with Erie could be the right decision to protect your finances in the future—but for individuals who are newer to having insurance or haven’t maxed out their policy limits, it may not be the right choice. 
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