A. Normally it makes sense for you to get an umbrella insurance from the insurer who also insures your home and autos. However, there are situations where an umbrella policy from a separate insurer is best. For example:
- You own lots of real estate. Most carriers won't extend their umbrella coverage to more than a few property locations.
- Your real estate is held in a trust or LLC (limited liability company). If so, you might need a policy from a company offering a "specialty umbrella" policy.
- You or a household member has a bad driving record. Most insurers won't provide an umbrella policy if you or your teenagers have had too many tickets/accidents or a DUI.
- You operate a business from your home. Homeowner policies don't generally cover losses due to business activities, and neither do their umbrella policies. So business owners working from home need a separate policy.
- You need a lot of coverage. Most insurers won't cover you for more than $5 million. If you need more, you have to go elsewhere.