Personal Umbrella Insurance New Jersey

Personal Umbrella Insurance in New Jersey

Premium Products – Premium Service – Premium Difference

Learn more about the Personal Umbrella Insurance policies available in New Jersey. One of agents can help you find the policy that's right for you.

Get a Personal Umbrella Insurance quote from our New Jersey experts


Connor-McClure Insurance Services, LLC

What is personal umbrella insurance?

Personal umbrella insurance is a type of liability insurance that provides additional coverage beyond the limits of standard homeowners, auto, or boat insurance policies. It is designed to protect individuals and families from significant financial loss resulting from liability claims, lawsuits, or judgments that exceed the coverage limits of their primary insurance policies. By offering higher coverage limits, personal umbrella insurance helps safeguard personal assets, such as savings and investments, from being depleted due to unexpected legal expenses or settlement costs. This extra layer of protection is particularly valuable for individuals with substantial assets or those who may be at a higher risk of being sued.

Personal Umbrella Insurance New Jersey

What does personal umbrella insurance cover in New Jersey?

Personal umbrella insurance typically covers the following:

  • Bodily Injury Liability: This includes medical expenses, lost wages, and pain and suffering for individuals who are injured in an incident for which you are found liable.
  • Property Damage Liability: Coverage for damages you cause to someone else’s property, such as their vehicle or home, due to an accident or other incidents.
  • Personal Injury: Protection against claims for libel, slander, defamation, or invasion of privacy that may arise from your actions.
  • Legal Defense Costs: Covers legal expenses related to defending yourself against lawsuits, even if the claims are found to be groundless, up to your policy limit.
  • Worldwide Coverage: Many personal umbrella policies offer coverage for incidents that occur outside of your home country, providing additional protection when you travel.
  • Additional Liability Risks: It may cover unique situations that may not be included in your primary policies, such as certain types of claims arising from personal activities or hobbies.

Get a Quote

Provide us with your details, and we'll create a personalized quote designed specifically for your Personal Umbrella Insurance needs.


Personal Umbrella Insurance New Jersey

What is the difference between personal umbrella insurance and excess liability insurance?

While both personal umbrella insurance and excess liability insurance provide additional liability coverage, they differ in their scope and application:

  • Personal umbrella insurance: Offers broader coverage, including personal injury and certain non-automobile-related claims. It also provides protection beyond your existing policies’ limits, covering a wide range of potential liability situations.
  • Excess liability insurance: Primarily increases the liability limits of existing insurance policies, such as auto or homeowners insurance, without offering the broader coverage options included in umbrella policies.

  • Underlying insurance policies play a crucial role in personal umbrella insurance. Most insurers require you to maintain specific minimum coverage levels on your primary insurance policies, such as homeowners and auto insurance, before you may purchase an umbrella policy. This requirement ensures that your primary policies provide adequate coverage for common liability claims. For instance, if your auto insurance has a liability limit of $300,000 and you purchase a personal umbrella policy with a $1 million limit, the umbrella insurance will only kick in after your auto insurance limits are exhausted. Essentially, your umbrella policy acts as an additional layer of protection on top of your existing coverage, filling the gap for any excess liabilities.

  • Yes, you may purchase personal umbrella insurance even if you engage in high-risk activities, but there may be specific considerations to keep in mind. Insurance providers may view high-risk activities—such as extreme sports, motorcycle riding, or operating a home-based business—as factors that could increase the likelihood of liability claims. As a result, insurers may require higher underlying liability limits on your primary insurance policies or even impose restrictions or exclusions on certain activities in your umbrella coverage. It’s essential to disclose all relevant activities to your insurance agent to ensure you have comprehensive coverage that adequately addresses your unique risks.

  • Personal umbrella insurance typically does not provide coverage for rental properties if you are generating income from them. If you rent out property, your primary insurance policy should include landlord coverage or rental property insurance to address specific liability risks associated with renting. However, if you occasionally rent out your property on a short-term basis (like through platforms such as Airbnb), personal umbrella insurance might offer some additional liability protection, provided your primary policy covers short-term rentals. To ensure adequate coverage, it’s important to discuss your rental activities with your insurance agent, who may help you understand your options and recommend the best coverage strategies for your needs.

  • The cost of personal umbrella insurance in New Jersey is influenced by several factors, including:

    1. Underlying Insurance Policies: Insurers often require that you have certain minimum coverage limits on your underlying homeowners, auto, or other liability insurance policies. The higher these limits, the more coverage you have before the umbrella policy kicks in, which can affect the umbrella premium.
    2. Coverage Amount: The total amount of umbrella coverage you choose will directly impact the premium. Higher coverage limits typically result in higher premiums, though the cost per additional million dollars of coverage generally decreases as the limits increase.
    3. Location: Where you live can affect your premium due to regional differences in risk factors, such as crime rates, natural disasters, and local laws regarding liability.
    4. Personal Assets: The more assets you have, the more liability coverage you may need to protect those assets. Individuals with substantial assets or high net worth may face higher premiums based on the need for greater protection.
    5. Lifestyle Factors: Certain lifestyle choices can impact premiums, including hobbies or activities that may increase liability risks, such as owning a swimming pool, engaging in extreme sports, or having a dangerous pet breed.
    6. Age and Gender: Age and gender may influence the cost of personal umbrella insurance, as younger individuals or males may statistically have a higher likelihood of being involved in accidents or liabilities.

How can residents obtain personal umbrella insurance in New Jersey?

Reach out to the independent agents at Connor-McClure Insurance Services for a fast quote on personal umbrella insurance. Our experienced team understands the importance of having adequate liability coverage to protect your assets and peace of mind. We can guide you through the intricacies of personal umbrella insurance, ensuring you choose the right policy that fits your lifestyle and needs.

Get a Quote

Share your details with us, and our team of friendly agents will be in touch with you soon!