Thompson Insurance Agency

Umbrella Insurance
in Tennessee
and Mississippi

One lawsuit can exceed the limits on your home and auto policies. A personal umbrella policy adds $1 million or more in liability protection for as little as $150–$350 per year — making it one of the most cost-efficient coverages available to Mid-South families.

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Plain-English Coverage Guide

What Umbrella Insurance Actually Does

A personal umbrella policy sits above your existing home and auto coverage. When a liability claim exhausts the limits on one of those underlying policies, your umbrella steps in to pay the remainder — up to its own limit, typically starting at $1 million.

Think of it as a single policy that protects everything you have worked to build: your home equity in Germantown or Collierville, your retirement savings, your investment accounts, even your future income. Without an umbrella, a serious accident, a dog bite, or a guest's injury on your property could result in a judgment that reaches beyond your standard policy — directly into your personal assets. For most clients, a $1 million umbrella is the single highest-value insurance purchase they can make for the premium invested.

Who Needs It

When an Umbrella Policy Makes Sense

An umbrella policy is not only for wealthy households. Anyone with assets worth protecting — or future income worth preserving — should consider one.

Homeowners with Significant Equity

If you have built meaningful equity in your home in Germantown, Collierville, or DeSoto County, that equity is exposed to a civil judgment that exceeds your underlying policy limits. An umbrella protects it.

Households with Teenagers or New Drivers

Young drivers have statistically higher accident rates. When a serious accident involves injuries to others, the liability exposure can quickly surpass standard auto limits. An umbrella provides a critical backstop.

Pet Owners and Pool Owners

Dog bite claims and swimming pool accidents are among the most common triggers for high-dollar liability suits. If you have a dog, a pool, or a trampoline, an umbrella is a natural extension of your homeowners coverage.

Anyone with Substantial Assets or Income

Courts can garnish wages following a civil judgment. Even if your current assets are modest, your future earning capacity is at risk without adequate liability protection. Umbrella coverage is the most efficient way to protect both.

What's Typically Included

What an Umbrella Policy Covers

Excess Liability Above Auto Limits

If you are at fault in a serious accident and the injuries to others exceed your auto liability limits, your umbrella covers the gap — protecting your savings, property, and income from judgment.

Excess Liability Above Homeowners Limits

Guest injuries, property damage you cause, and other incidents covered under your homeowners policy can exceed standard limits. Your umbrella picks up where those limits leave off.

Personal Injury Coverage

Most umbrella policies include personal injury coverage for claims of libel, slander, defamation, invasion of privacy, and false arrest — protections that your homeowners policy does not provide. This is especially relevant in today's social media environment.

Worldwide Coverage

Personal umbrella policies typically follow you globally. If a covered incident occurs while traveling outside the United States, your umbrella generally applies — providing peace of mind wherever you go.

Know Your Gaps

What's Typically Excluded

Common Questions

Umbrella Insurance FAQ

An umbrella policy provides an additional layer of liability protection above the limits on your home, auto, and other underlying policies. If a judgment against you totals $1.2 million and your auto policy has $300,000 in liability, your umbrella covers the remaining $900,000 up to its own limit.
A $1 million umbrella policy typically costs between $150 and $350 per year — making it one of the most cost-efficient insurance purchases available. Each additional million in coverage is generally even less expensive. The exact premium depends on your underlying liability limits and number of vehicles and properties.
A common guideline is to carry umbrella limits at least equal to your net worth. If your total assets — home equity, retirement accounts, investments, and other holdings — exceed $500,000, a $1 million umbrella is a reasonable starting point. For higher-net-worth households, we explore $2–5 million or more.
Personal umbrella policies are designed for personal activities. If you own a business or provide professional services, a separate commercial umbrella or professional liability policy is needed. We can help you evaluate whether your personal or commercial exposure requires a more specialized solution.
Most umbrella carriers require minimum underlying liability limits — typically $300,000 on your homeowners and $250,000–$300,000 per person / $500,000 per accident on your auto. We review your existing policies before placing an umbrella to ensure all underlying requirements are met.
Yes. Personal umbrella policies commonly include coverage for personal injury claims such as libel, slander, defamation, and false arrest — coverage that does not exist under a standard homeowners policy. In an era of social media, this protection is increasingly relevant.
Yes, most personal umbrellas extend to rental properties you own, subject to the number of units and the carrier's underwriting guidelines. Landlords with multiple properties may need a commercial umbrella. We assess the right structure for your rental portfolio.
Beyond protecting existing assets, an umbrella policy also protects future income from wage garnishment following a civil judgment. Even if your current net worth is modest, future earnings can be at risk after a serious liability claim. At $150–$350 per year, umbrella coverage is rarely a difficult value proposition.

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