What underlying limits do I need before getting an umbrella policy in Georgia?

Before you can buy an umbrella policy in Georgia, your insurer will require you to carry certain minimum liability limits on the policies underneath it, usually $250,000 to $300,000 per person and $500,000 per accident on your auto policy, and around $300,000 to $500,000 of personal liability on your homeowners policy. An umbrella policy is extra liability coverage that sits on top of your home and auto policies and pays after their limits are used up.

These required minimums are called underlying limits. The umbrella only kicks in once the liability limit on the policy below it is exhausted, so the insurer wants a solid base in place first. Think of it as a ladder, where your auto and homeowners policies form the lower rungs and the umbrella sits above them.

Typical underlying requirements look like this:

• Auto liability of $250,000 per person and $500,000 per accident, or a combined single limit of $500,000
• Homeowners personal liability of $300,000 to $500,000
• Similar minimum liability on boats, motorcycles, or rental properties if you own them

Why the requirement exists matters. If your underlying limits are too low, there would be a gap between where your home or auto coverage stops and where the umbrella starts. If you let an underlying limit lapse below the required amount, you could be stuck paying that gap yourself at claim time.

For example, a Kennesaw driver causes a serious wreck with $900,000 in injuries. He carries the required $250,000 of auto liability and a $1 million umbrella. His auto policy pays the first $250,000, and the umbrella pays the next $650,000. If he had carried only $100,000 of auto liability, below the umbrella requirement, he could have owed the $150,000 difference out of pocket.

Keep in mind that each carrier sets its own exact underlying requirements, so the numbers above are typical rather than universal. Some umbrella insurers ask for higher auto bodily injury limits, and if you own a boat, a motorcycle, or a rental property, they will set required liability limits on those too. The simplest approach is to confirm the umbrella insurer’s specific requirements first, then adjust the home and auto limits to match before the umbrella is issued.

Getting the underlying limits right is the foundation of an umbrella that actually works. We can check your current limits and set up the right base before adding an umbrella with a free coverage review at our coverage review page.