Here's something most Ohio homeowners don't realize until it's too late: your auto and homeowners insurance have liability limits that might not be enough if you're sued. If someone gets seriously hurt in an accident you cause, and the medical bills and legal costs exceed your policy limits, they can come after your savings, your home, and even your future wages. That's where umbrella insurance comes in.
Think of umbrella insurance as a safety net that catches you when your other policies run out. It's extra liability coverage that kicks in after you've exhausted the limits on your car or home insurance. And the good news? It's surprisingly affordable, especially considering what it protects.
What Umbrella Insurance Actually Covers
Umbrella insurance isn't just for wealthy people with mansions and yachts. If you own a home, have savings, or earn a good income, you have assets worth protecting. An umbrella policy provides additional liability coverage beyond what your auto, homeowners, or renters insurance offers.
Here's what it covers: car accidents where you're at fault and someone suffers serious injuries, injuries that happen on your property (like a guest slipping on your icy driveway), damage your dog causes to someone else or their property, and even claims like libel or slander. Basically, if someone sues you and wins, your umbrella policy helps cover the judgment, legal fees, and other costs that exceed your underlying insurance limits.
Most policies start at $1 million in coverage and go up from there in $1 million increments. Some insurers offer coverage up to $5 million or even higher for those who need it. The coverage travels with you, too—it protects you whether you're driving in Cleveland, hosting a party in Columbus, or vacationing out of state.
Why Ohio Residents Need Umbrella Coverage
Ohio has a moderate lawsuit climate compared to some states, but that doesn't mean you're safe from financial risk. Nationwide, the number of nuclear verdicts—jury awards exceeding $10 million—jumped 52% in 2024. Medical costs keep rising, and juries are increasingly sympathetic to injured plaintiffs. Even a straightforward car accident can result in six-figure medical bills if someone needs surgery, rehabilitation, and ongoing care.
Here's the reality: your standard auto insurance policy in Ohio probably has liability limits of $25,000, $50,000, or maybe $100,000 per person. Your homeowners policy might offer $100,000 to $300,000 in liability coverage. If you cause a serious accident and the other driver needs $500,000 in medical care, that gap comes out of your pocket. Your house, your retirement accounts, your wages—all of it is fair game for creditors.
The good news is that umbrella insurance in Ohio remains affordable. A $1 million policy typically costs between $150 and $400 per year as of 2024—that's roughly $12 to $33 per month. For many Ohio families, that's less than a couple of dinners out, but it protects everything you've worked to build.
How Much Coverage Do You Actually Need?
Financial advisors typically recommend carrying umbrella coverage equal to your net worth. Add up the value of your home, savings accounts, investment accounts, and other assets. If that number exceeds $500,000, you should seriously consider umbrella insurance. If it's over $1 million, umbrella coverage isn't optional—it's essential.
But net worth isn't the only factor. Consider your future earning potential, too. If you're a young professional with decades of career ahead of you, a judgment could garnish your future wages. Think about your lifestyle risks as well: Do you have a pool? A trampoline? Teenage drivers? Host parties? Own rental property? All of these increase your liability exposure.
Most people start with $1 million in coverage. It's the sweet spot of affordability and protection. Each additional $1 million typically costs another $75 to $100 per year, so if your assets justify it, stepping up to $2 million or $3 million doesn't break the bank. High-net-worth individuals often carry $5 million to $10 million, with annual premiums ranging from $600 to $1,300 depending on their risk profile.
Requirements to Get Umbrella Insurance in Ohio
You can't just buy umbrella insurance on its own. Insurers require you to carry minimum liability limits on your underlying policies first. Typically, you'll need at least $250,000 in bodily injury liability per person and $500,000 per accident on your auto insurance, plus $300,000 in liability coverage on your homeowners policy.
If your current auto and home policies have lower limits, you'll need to increase them before you can add an umbrella policy. The good news is that raising your liability limits on existing policies is usually inexpensive. Many people find that the total cost of higher underlying limits plus a $1 million umbrella policy is less than they expected—and provides exponentially more protection.
Most insurers prefer (or require) that you bundle your umbrella policy with your auto and home insurance. This simplifies claims and often qualifies you for a multi-policy discount. Shop around, though—different insurers have different requirements and pricing, and rates have been rising. Premiums increased by an average of 9.26% in early 2025 as insurers responded to growing claim costs and more frequent large verdicts.
Getting Started with Umbrella Insurance
The first step is calculating your net worth and thinking through your risk factors. Then check your current auto and homeowners policies to see what liability limits you're carrying. If they're below the minimums required for umbrella coverage, ask your insurer about increasing them.
Next, get quotes from multiple insurers. Your current insurance company is a good place to start since bundling often saves money, but don't stop there. Compare coverage options, requirements, and costs. Ask about discounts for things like having a security system, being claim-free, or insuring multiple vehicles.
Once you've found the right policy, review it annually. As your assets grow or your life situation changes—maybe you buy a bigger house, start a business, or your kids start driving—you may need to adjust your coverage. The peace of mind that comes from knowing your assets are protected is worth far more than the modest annual premium. In an increasingly litigious world, umbrella insurance isn't just smart—it's essential protection for everything you've worked to achieve.
