Umbrella and Excess Liability Insurance in New Jersey
An umbrella policy adds a layer of liability protection, usually starting at $1 million, on top of your home, auto and other policies. It is one of the least expensive ways to protect your savings, your home and your future income from a large lawsuit. Stonebrook has placed umbrella coverage for New Jersey families since 1982.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
What is umbrella insurance?
It is extra liability coverage that pays after your home or auto liability limit runs out, and it can cover some claims those policies don’t.
How much umbrella coverage do I need?
A common starting point is enough to cover your net worth, rounded up to the next $1 million, with more if you have added risks like a pool or a teen driver.
What is the difference between umbrella and excess liability?
An umbrella can broaden coverage beyond your underlying policies. An excess policy only adds higher limits on the same terms.
Do I need certain limits underneath?
Yes. Carriers require minimum home and auto liability limits under the umbrella, commonly 250/500 on auto and $300,000 to $500,000 on home.
What an umbrella policy covers.
Your home and auto policies each have a liability limit. An umbrella sits above all of them and pays once those limits are exhausted.
Bodily injury
Serious injuries to other people, from a car accident to a guest who falls on your stairs.
Property damage
Damage you cause to someone else’s property, including multi-car accidents.
Personal injury
Many umbrellas cover claims like libel, slander, defamation and false arrest, which home and auto policies may not.
Legal defense
Attorney fees and court costs, which on many policies are paid in addition to the limit.
Everyone in the household
Usually extends to your spouse and resident relatives, including licensed teen drivers.
Rentals, boats and more
Can sit above liability for rental homes, watercraft and other exposures when they are scheduled underneath.
How much umbrella coverage do you need?
A lawsuit after a serious accident is not limited to your insurance. A judgment can reach your home equity, savings, investments and future wages.
A common starting point is an umbrella large enough to cover your net worth, rounded up to the next $1 million. Add more for exposures that raise your risk: a pool, a trampoline, teen or new drivers, rental properties, household staff, nonprofit board seats, or a large social media following.
Umbrellas are sold in $1 million layers. Many families carry $1 million to $3 million, and high-net-worth clients often carry far more through our Private Client carriers.
Umbrella limit guideline
A starting point for a conversation, not a quote. Carriers set their own underwriting rules and required underlying limits.
Talk through my umbrella limitUmbrella or excess liability?
The two terms are often used interchangeably, but they work differently.
| Personal umbrella | Excess liability | |
|---|---|---|
| Adds higher limits | Yes | Yes |
| Follows the underlying policy’s terms | Not always; it can be broader | Yes, it “follows form” |
| Can cover claims the underlying policy excludes | Often, subject to a retained limit (a self-insured amount) | No |
| Common uses | Families, homeowners, drivers | Very high limits stacked above an umbrella, and commercial programs |
Ask us which one you have. The declarations page and policy form show it, and the difference matters most when a claim falls between the cracks.
You probably need an umbrella if…
- You own a home.Your equity is an asset a lawsuit can reach, and visitors, contractors and guests create exposure.
- You have a teen or new driver.Auto accidents cause most large personal liability claims.
- You host often.Shabbos guests, simchas and gatherings at home, a sukkah, a pool or a trampoline all bring people onto your property.
- You own rental property.New Jersey requires rental owners to carry $300,000 to $500,000 of liability. An umbrella can add more on top.
- You employ household staff or serve on a board.Staff injuries, and decisions made on a nonprofit board, can lead to claims.
- Your net worth or income is growing.The more you have, the more a plaintiff’s attorney sees.
Stonebrook is an independent insurance agency.
We don’t work for one insurance company. We work with more than 25 carriers, so we can compare umbrella and excess liability options across carriers instead of selling you a single company’s policy.
Since 1982 we have helped New Jersey families from our office in Lakewood, and we place coverage in all 50 states through our carriers and partners. When something changes, or when you have a claim, you call people who know you.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Umbrella insurance questions, answered.
What does umbrella insurance cover?
An umbrella covers liability above your home, auto and other policies: injuries and property damage you cause to others, legal defense costs, and on many policies personal injury claims like libel and slander. It does not cover your own property or your own injuries.
How much umbrella insurance should I have?
A common starting point is enough to cover your net worth, rounded up to the next $1 million, plus more for added risks like a pool, teen drivers or rental property. We help you pick a limit based on your assets, income and household.
What is the difference between umbrella and excess liability insurance?
An umbrella adds higher limits and can also cover some claims your underlying policies exclude. Excess liability only adds higher limits on the same terms as the policy beneath it.
What underlying limits does an umbrella require?
Each carrier sets its own requirements, but they are commonly $250,000 per person and $500,000 per accident on auto, and $300,000 to $500,000 of liability on your home. If your current limits are lower, we raise them as part of adding the umbrella.
Does an umbrella policy cover rental properties?
It can, if the rental property’s liability coverage is scheduled underneath the umbrella. Tell us about every property you own so none is left out.
Does an umbrella cover my business?
No. A personal umbrella covers personal liability. Business activities need commercial liability and, for higher limits, a commercial umbrella. Stonebrook writes both.
Does an umbrella cover teen drivers?
Usually yes, for resident relatives listed on your auto policy. Some carriers have rules or surcharges for young drivers, which is another reason to compare carriers.
Is umbrella insurance worth it?
For most homeowners, yes. It is usually inexpensive relative to the $1 million or more of protection it adds, and it protects assets and future income that your home and auto limits alone may not.
Go deeper.
Let’s put the right umbrella over everything you own.
Take 30 seconds to take the first step towards better coverage.
Get a quote.
Tell us what you need and we’ll take it from there.