Umbrella insurance costs depend on a number of factors. For the most part, they are similar to factors that influence the rates of other types of insurance.

Rate Determining Factors

There are a number of factors that determine your umbrella insurance rates. They include:

Company that issues the policy – Regardless of other factors, different companies will issue different rates. If you already have home insurance and/or vehicle insurance with the company you get your umbrella insurance from, you will get lower rates.

The amount of coverage – The rates increase in proportion to how much coverage you pay for.

Personal risk factors – Any economic and health factors that make you a risk in the eyes of the insurance company. This can include your credit history, your driving record, your age and the location of your property.

Location – Insurance rates often differ depending on which state you live. Rates can also vary depending on the city or even the neighborhood where you reside.

Number of liability exposures – The number of homes and vehicles you have insured. If you already have your home and vehicles insured, you will get lower rates.

Other Costs

Regardless of what rates you get, you are dealing the a certain framework. Umbrella insurance usually covers 1-2 million dollars worth of expenses, but some policies go as high as five million. The premiums are usually $200 to $300 per year, and deductibles seldom go below $300,000. Still, compared to other types of insurance, umbrella insurance is fairly affordable.