Umbrella insurance could help protect you if you're sued — here are the best companies offering it
While never required by law, umbrella insurance can be incredibly valuable for individuals and business owners with a lot of assets or those with a significant risk of being sued. This can include households with dogs that might bite, swimming pools that could cause accidents and teenage drivers who pose higher risks. Umbrella insurance provides additional coverage beyond your underlying insurance policies, like auto and homeowners insurance. It can protect you financially from bodily injury and property damage liability claims, as well as legal expenses beyond your usual insurance limits if you find yourself in a lawsuit. For example, if you're involved in an auto accident that causes $500,000 worth of bodily injury damages, but your auto insurance policy has a $300,000 limit for these types of damages, an umbrella insurance policy would cover the remaining $200,000. Otherwise, your savings and future earnings could be used to cover the difference. Here, CNBC Select rounds up the best umbrella insurance providers based on availability, customer satisfaction and maximum limits. (See our methodology for more information on how we made this list.)

Best umbrella insurance

Best overall

Travelers Umbrella Insurance Learn More Cost The best way to estimate your costs is to request a quote

Maximum coverage $10 million

App available Yes

Policy highlights A Travelers Umbrella Insurance policy comes with all of the protection you need, covering you at home and abroad. These umbrella policies include coverage for libel, slander, and defamation of character, and legal defense costs. Pros High enough coverage options for most typical families

High ratings for customer satisfaction Cons Quotes and purchasing not available online Learn More View More

Who's this for? Travelers can be a good fit for many families and business owners, with $1 to $10 million in umbrella insurance coverage available. It can also help provide coverage for liabilities that happen outside of the U.S. Standout benefits: Travelers is highly rated for its underlying policies, homeowners insurance and auto insurance, earning high rankings from J.D. Power for both types of insurance. Additionally, a below-average complaint index helps Travelers stand out. [ Jump to more details ]

American Family Umbrella Insurance Learn More Cost The best way to estimate your costs is to request a quote

Maximum coverage Undisclosed

App available Yes

Policy highlights American Family has a wide variety of umbrella policies available, including personal coverage, commercial coverage and coverage for ranches and farms. It's also highly rated for auto and home insurance. Pros Wide variety of coverage options available. Cons Not available in all 50 states. Learn More View More

Who's this for? American Family has strong options for auto and homeowners insurance in addition to umbrella insurance. American Family also offers a unique umbrella insurance policy for those with a farm or ranch. Standout benefits: American Family's umbrella insurance offers an opportunity to bundle coverage, making it a top choice for those who want simplicity. [ Jump to more details ]

Best for high-net-worth families

Chubb Masterpiece Excess Liability Insurance Learn More Cost The best way to estimate your costs is to request a quote

Maximum coverage $100 million

App available Yes

Policy highlights Chubb's Excess Liability Insurance offers high coverage limits with a strong track record of customer service and satisfaction. It offers coverage worldwide and at home, and includes defense costs and legal counsel in lawsuits. Pros High coverage limits

Strong scores for customer satisfaction Cons Quotes and purchasing not available online Learn More View More

Who's this for? Chubb's excess liability insurance is a strong choice for those with lots of assets to protect. It stands out for those who employ staff in their homes, as Chubb provides liability coverage related to employment practices for residential staff. Standout benefits: With up to $100 million in coverage available, Chubb is a top choice for those who may need more than the typical $10 million limit available through other umbrella insurance policies. It covers defense costs for most lawsuits and extends coverage worldwide. [ Jump to more details ]

Best for military families

USAA Umbrella Insurance Learn More Cost The best way to estimate your costs is to request a quote

Maximum coverage $5 million

App available Yes

Policy highlights While only available to military members, veterans and their families, USAA's Umbrella Insurance could be a good fit for those eligible who already have auto insurance policies through the company (carrying an auto policy is a requirement for this umbrella insurance). Its auto and homeowners insurance offerings are highly rated for customer claims satisfaction. Pros Auto insurance through USAA is required, but other insurance companies may be used for other coverages.

High ratings for customer satisfaction Cons Only available to military members and their families Learn More View More

Who's this for? USAA umbrella insurance is only available to those who have served in the U.S. military and their families. However, those who are eligible may find that USAA's coverage stands out in terms of customer service. Standout benefits: USAA is consistently one of our top picks for auto insurance, which anyone getting umbrella insurance will need to get through the company (except for in New York, Pennsylvania or Hawaii). [ Jump to more details ]

More on our top umbrella insurance companies

Travelers

Travelers has been in the insurance business for more than 165 years and continues to be highly rated for customer satisfaction and financial strength. It boasts an A++ financial strength rating by AM Best. Types of umbrella insurance available Personal and commercial NAIC complaint index (Average is 1) 0.79, lower than expected Policy requirements Not disclosed [ Return to summary ]

American Family

American Family has been insuring families for 90 years, garnering a reputation for strong coverage and excellent customer service. Types of umbrella insurance available Personal, commercial, farm and ranch NAIC complaint index (Average is 1) 0.79, lower than expected Policy requirements Not specified [ Return to summary ]

Chubb

Chubb has been named one of CNBC Select's top picks for high-net-worth families for homeowners insurance, flood insurance and jewelry insurance. That's for good reason — the company has consistently high marks for customer service and satisfaction. Chubb is also rated highly for financial strength by AM Best. Types of umbrella insurance available Personal and commercial NAIC complaint index (Average is 1) 0.24, lower than expected Policy requirements Not disclosed [ Return to summary ]

USAA

USAA is consistently a top contender in the insurance space, despite only being available to those who are currently serving in the military, veterans and their families. Its homeowners insurance and auto insurance have both been highly rated for customer satisfaction by J.D. Power. Types of umbrella insurance available Personal and commercial NAIC complaint index (Average is 1) 1.79, higher than average Policy requirements Requires auto insurance policy, minimum limits on auto, homeowners and other types of insurance apply [ Return to summary ]

FAQs What does umbrella insurance cover? Umbrella insurance can add to your liability coverage, going beyond the limits of your auto insurance, homeowners insurance or other policies and help if you're facing a lawsuit for unintentional damages. It can provide coverage for legal defense costs that you'd otherwise be on the hook for, including things like attorney fees. Who needs umbrella insurance? Anyone with assets to protect from legal rulings could benefit from umbrella insurance. Some situations could put you at higher risk of a lawsuit, including: Owning a pool or trampoline

Frequently having guests or hosting parties

Volunteering or coaching children's sports

Having young drivers

Being a landlord If you find yourself in one of these positions, having umbrella insurance could provide some peace of mind. What is not covered by umbrella insurance? Since umbrella insurance is designed to cover damages to others, it won't cover your property or belongings. Umbrella insurance also won't cover intentional acts. Under a personal umbrella insurance policy, business damages or property won't be covered. Generally, this includes businesses operated out of your home. How much umbrella insurance do I need? Generally, umbrella insurance coverage should equal your taxable assets, including things like investments, homes beyond your primary residence and other assets.

Bottom line

Umbrella insurance can help cover costs beyond the liability limits of your auto, homeowners or other insurance to protect your assets if you're found responsible for damages to others. For the best umbrella insurance coverage, consider the underlying policy requirements, the quality of those underlying policies, the company's financial strength, and any specific features you may need.

Subscribe to the CNBC Select Newsletter! Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best umbrella insurance companies, we compiled over 100 data points on more than a dozen insurance companies offering umbrella insurance policies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best umbrella insurance companies.

Our methodology

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.