Umbrella liability insurance from Nationwide is a kind of additional personal liability coverage that offers more coverage than just a standard auto or homeowners policy—in terms of both scope and dollar amount.
Umbrella insurance might not be something that a lot of people are familiar with, but it’s a wise investment if you’re a homeowner
, have children, or just want to make sure that your finances and assets are protected in the event of an unfortunate event. Is an Umbrella policy from Nationwide something you should consider adding to your homeowners or car insurance
policy? Let’s find out! Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ drivers What is an umbrella insurance policy?
As the name suggests, an umbrella insurance policy offers you broader liability protection than your personal liability insurance
does. Sometimes called excess liability protection, this coverage not only has a higher dollar amount of coverage, but it also protects you from scenarios that typical liability coverage doesn’t, like slander and false imprisonment. The amount of coverage traditionally starts at $1,000,000 and can be raised by $1 million increments—up to as much as $10 million with some companies. The regular limit on most home and auto policies is $300,000 or $500,000, so an umbrella policy offers a good deal of additional coverage. And at around $150 to $300 per year, it’s also pretty affordable.
You have to hit certain limits on your auto and homeowners insurance policies before your umbrella policy kicks in, but it’s a solid additional line of defense for your finances.
How does umbrella insurance work with Nationwide?
In order to get an umbrella policy with Nationwide, you have to have both an auto and a homeowners, renters
, or condo policy. Additionally, you have to have at least $300,000 of standard liability coverage in order to get an umbrella policy. What does Nationwide umbrella insurance cover?
So what do you get under this umbrella? A Nationwide umbrella policy can protect you from financial damages due to things like:
Some kinds of libel, slander, or defamation lawsuits
Additionally, (and perhaps most importantly), Nationwide's umbrella policy covers liability costs that are above and beyond the limits of your regular policies.
Here’s an example: you buy a home that has a treehouse on the property. Sweet! As you're chatting with the new neighbors in your front yard, their son asks permission to get into the treehouse—and proceeds to fall out of it and break both his legs. Nightmare, right? Well, as the property owner, you’re legally liable for the kid’s injuries.
His recovery is extensive and expensive, and requires a long hospital stay. The bills quickly hit the limit of your homeowner’s policy—now what? Here’s where your umbrella policy kicks in! It covers additional medical expenses up to the policy's limit, plus offers you financial protection if the parents decide to sue.
One of the downsides of being a homeowner is that it comes with more liability
—in some areas, homeowners are responsible for the sidewalks or even the roads in front of their homes, and are legally liable if someone gets injured due to its poor condition. There have also been a few asinine cases where a trespasser has been injured and successfully sued the homeowner—despite the fact that they’re trespassing. Your home is an enormous asset and one you want to protect, but what if you’re a renter? An umbrella policy can still make sense as a shield against personal injury lawsuits and liability expenses that go beyond the bodily injury liability
that your car insurance offers. Let’s say you look down for a second to change the radio station, and you miss that the car in front of you has suddenly stopped. You rear-end them, which causes them to collide with the car in front of them. Unfortunately, a few of the passengers in the vehicles are badly injured.
In this case, you’re legally responsible for everyone’s damages, as you were at fault. With the cost of medical care as high as it is, it's likely that their expenses will quickly dwarf the liability limits of your car insurance policy. This leaves you open to potential lawsuits and financial ruin—but with an umbrella policy, you have a good deal of additional protection.
MORE: How different types of car accidents affect your insurance rates
What it won’t cover
Nationwide can provide a nice-sized umbrella, but this coverage won’t keep you safe from everything. You can speak to a Nationwide agent for details, but in general, umbrella policies won’t cover the following:
Damages to your own home or possessions
Damage or injuries that you intentionally cause
Overall, any damages to you or your possessions will not be covered by your own umbrella policy. If your house burns down due to a faulty crock pot, your umbrella policy won’t come into play. It also doesn’t cover anything that you do intentionally, so maybe rethink your plan to BBQ the Tesla Model S
of the guy that dumped your bestie. You can get an umbrella policy that covers your business, but it’s a completely separate policy from your personal one.
How much does Nationwide umbrella insurance cost?
Like car insurance, the exact cost of an umbrella policy changes depending on individual circumstances and risk factors. But that being said, it’s generally quite affordable.
Sources report that Nationwide’s umbrella coverage ranges from $180 to $240, which is a pretty good deal for a lot of coverage.
Who can buy a personal umbrella policy from Nationwide?
To get an umbrella policy from Nationwide, you have to have both an auto and a renters, homeowners, or condo insurance policy. In addition to that, you’ll likely need to have reached the maximum liability limit on those policies.
Nationwide only offers umbrella policies in the lower 48 states and Washington, D.C
. So if you live in Alaska
or Hawaii
, you won’t be eligible. You should probably consider umbrella coverage if:
You have a high net worth
Your property has a swimming pool, a treehouse, a playset, or any other attractive nuisance
on it You have kids of any age—as their parent, you’re responsible for any damages they cause
MORE: How to get cheap car insurance for young drivers
Is a Nationwide personal liability umbrella policy worth it?
Now for the big question—is an umbrella policy from Nationwide worth the money? Let’s break down a few pros and cons.
Pros
It’s surprisingly affordable. For an extra $15 to $20 a month, you’ll get protection from some pretty dire scenarios.
It has higher coverage limits. The damages from an auto accident
or any other kind of mishap can rapidly exceed the limits of your standard liability coverage, and without an umbrella policy, you could be looking at massive out-of-pocket costs, including potential lawsuits. It offers a broader range of protection. Unlike a homeowners or auto policy, an umbrella policy covers things like a slander lawsuit or damages stemming from an unlawful arrest.
Cons
It increases your overall insurance costs. The cost of an umbrella policy is pretty low, but in order to get one you’ll have to have higher (read: more expensive) limits on your other policies.
Not everyone is eligible. Coverage isn’t available in all states, and eligibility is also determined by things like risk factors and prior loss and claim history.
It doesn’t cover your own damages. As a liability policy, umbrella insurance only applies to other people’s expenses. If you want to have some coverage for yourself and your car, then it’s best to start with some comprehensive
and collision
insurance, or a personal injury policy (PIP)
. The bottom line
If you have a lot of assets to protect or are in a scenario that leaves you open to a lot of personal liability, then a Nationwide umbrella policy is a smart investment for guarding your finances.
On the other hand, if you’re below the liability limits on your other policies or don’t have any policies that cover you or your expenses, the wise move is to build your standard coverage up first before you go for an umbrella policy.
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was wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up my homeowners insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary Y.
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