Farmers’ personal liability umbrella insurance offers additional liability coverage, which extends from a standard home or car insurance policy to protect you and your assets from a larger range of expensive claims not covered by home or car insurance.

Liability insurance

provides the average individual with the financial support to handle normal claims from things like a car accident. But if you have a high net worth or children that require extra financial protection, you may want to extend your coverage with “umbrella insurance.”

If you’re considering adding umbrella insurance to your maxed-out liability insurance, you’ve come to the right place! Our review of Farmers’ umbrella insurance can help you determine if you should get this additional coverage with your

car insurance

home insurance

policy. Let’s get started.

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What is an umbrella insurance policy?

An umbrella insurance policy or personal umbrella policy (PUP) increases your

personal liability insurance

, adding protection outside your car or homeowners insurance limits. The extended coverage on an umbrella policy can help you manage liability claims that aren’t covered by typical liability policies.

Liability coverage on an umbrella policy starts at $1,000,000, and most insurance companies have a maximum of $5 million or $10 million. Those are pretty high limits compared to the typical $300,000-500,000 cap on standard home or car insurance policies. The added coverage rings in at an annual average cost of $150 to $300.

You can add an umbrella policy to your insurance alongside your home or car policy, and it will only apply once you’ve exhausted the liability maximum on whichever policy applies.

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How does umbrella insurance work with Farmers?

Farmers policyholders can request umbrella coverage if they’ve met the liability limits on all of their policies, including home, auto, and

rental property insurance

. Keep in mind that umbrella policies cover a lot more than just extended liability on your current policies. So while you’ll have to pay a higher rate for maximum liability coverage on your existing policies and the premium for your umbrella insurance, you’ll also get the perks of Farmer’s full umbrella coverage.

With Farmers, maximum liability coverage on your existing policies has a combined single limit of $300,000, which covers bodily injury liability per person and per accident, plus property damage liability coverage.

What does Farmers umbrella insurance cover?

Farmers’ umbrella insurance offers a safety net for situations that result in losses outside of the typical auto or homeowners liability limits. You’ll receive extended liability coverage for a number of large financial risks, such as:

False arrests

Libel, slander, and defamation

Invasion of privacy

Malicious prosecution

Property damage

Landlord liability

Legal fees

Overseas liability protection for travelers

These financial risks are not covered by typical insurance policies, and if a claim is filed against you that exceeds the liability coverage on your policies for home, auto, or renters insurance, high medical or repairs bills also won’t be fully covered.

Let’s suppose you’re driving home from work after a long day and you switch lanes on the highway without getting a good look at your mirror or blind spot. Suddenly, you’ve caused a collision with four vehicles involved, and since you are

the at-fault driver

, you’ll be responsible for covering the medical bills for any drivers and passengers affected, plus the repair bills for all vehicle damages.

If you have a standard Farmers car insurance policy, you’ll have up to $300,000 in

bodily injury liability

and

property damage liability insurance

that covers medical bills and vehicle repairs. But with four vehicles, four drivers, and some passengers involved, your medical and repair bills will be far greater than $300,000.

Whatever costs you incur beyond your liability coverage will have to come out of your pocket, and in this case, the other drivers can file personal injury lawsuits against you to recover their compensation.

Now, let’s say one of the drivers in the crash sustained an injury that prevents him from carrying out his job, and it’s going to have a long-term impact. Alongside his post-crash medical bills, he can also sue you for the loss of financial income and mental anguish caused by your accident. In any case, standard liability does not cover these damages, but umbrella insurance can help you avoid this among many financial burdens.

MORE: How different types of car accidents affect your insurance rates

What it won’t cover

Farmers umbrella insurance will cover liabilities involved with your primary residence, two motorized vehicles, small sailboats, and motorboats with less than 50 horsepower, and there are upgrades available for additional assets or properties.

With all of this added protection, it may seem like a good idea to add umbrella coverage to your Farmers insurance portfolio, but keep in mind that these policies don’t cover everything.

Your Farmers umbrella policy will not cover the following exclusions:

Your own injuries

Damages to your property

Business liability

Intentional harm

Vet bills

Let’s say you just cooked up some shrimp tacos, but now your entire house smells like shrimp and spices. You light a few candles to displace the scent, but you accidentally placed one of your candles a little too close to a curtain, which catches the flame. A fire spreads through your kitchen and burns through the walls—into the condo next door—which leaves you with repair costs that exhaust your homeowners insurance liability limits.

An umbrella insurance policy will include a higher liability limit that can cover some or all of the repair costs in this situation. But let’s say you were testing candles that you just made for your candle business instead of lighting them to mask the scent of shrimp tacos. In that case, the fire would’ve originated from business activities, which are strictly covered under business insurance policies.

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How much does Farmers umbrella insurance cost?

Farmers umbrella insurance can cost anywhere between $150 to $300 per year depending on your liability amount. The cost is also dependent on your insurance history, including any records or factors with risk potential.

The good news is that overall, you won’t pay more than around $25 a month for millions of dollars of extended liability coverage. Just remember that you will also have to pay higher premiums for maximum liability coverage on your existing applicable policies, which could incur a higher annual insurance cost overall.

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Who can buy a personal umbrella policy from Farmers?

Farmers policyholders can purchase a personal umbrella policy if they have an existing required policy—like car, home, renters, or sailboat insurance—with the maximum liability limits applied.

Most states permit umbrella insurance, but there may be exclusions with Farmers. You can call to inquire if you’re unsure of your state’s eligibility, but in general, you should consider purchasing an umbrella policy if you:

Have a high net worth

Have a swimming pool, swingset, trampoline, or treehouse on your property (high-risk attractions)

Are a dog owner

Have

teenage drivers

in your household

Have children who you are legally responsible for and/or live with you. (Whether your three-year-old bites another child or your college sophomore throws a party while you’re on vacation that causes damage to your neighbor’s house—an umbrella policy may be of use.)

MORE: How to get cheap car insurance for young drivers

Is a Farmers personal liability umbrella policy worth it?

Farmers umbrella policies offer a wide range of protection, but is it worth the worry or cost? Let’s explore the advantages and disadvantages of adding this extended coverage to your Farmers insurance policy.

Pros

…it’s pretty affordable. Umbrella coverage typically adds between $12.50 and $25 to your overall insurance costs for the month, and these numbers aren’t anywhere close to the price of a lawsuit.

…it comes with higher limits. With an umbrella policy, you won’t have to worry about unmanageable

car accident expenses

. For example, the cost of an average post-accident hospital stay is around $60,000, while the average vehicle is priced at $48,000—these will nearly if not surely drain the typical liability limits on your policy.

…it provides protection for more than just auto- or home insurance-related incidents. A legal defense against defamation or slander is not included in your auto or home insurance, but they do come with an umbrella policy.

Cons

…it costs more overall. Adding umbrella coverage to your policy is pretty affordable, but meeting the coverage limits of your existing policies can result in some pretty high car, home, or renters insurance premiums that raise your total insurance costs.

…not everyone is eligible. Your location, risk factors, and asset loss history can impact your ability to purchase umbrella coverage.

…it won’t cover your own injuries or property damage. Your personal expenses are not covered by umbrella policies. Property damage insurance such as

collision

comprehensive coverage

might be the best and cheapest coverages to add to your policy if you’re looking for personal damage protection.

MORE:

What is full-coverage car insurance?

The bottom line

If your liability limits are worth less than your net worth, it may be wise to buy a Farmers umbrella policy. Umbrella coverage offers higher financial protection and if your assets accumulate high values, it could be worth the added safety.

With that said, if you don’t have property damage insurance or if you haven’t met the liability limits on your policy, try to increase your existing coverage before you invest in umbrella insurance.

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