Liability coverage is among the highest-leverage insurance most Tempe households can buy. An umbrella policy layers $1M or more of protection on top of your homeowners and auto coverage, and it is often inexpensive relative to the protection it adds. For many Tempe households the math is simple: you have more assets than your underlying liability limits cover. Hicks Insurance Group is an independent agency licensed in Arizona, with carrier access from $1M starter umbrellas through $10M+ high-net-worth policies.
This guide covers what an umbrella policy actually does, how it stacks with your existing coverage, and the Tempe scenarios that most often lead to umbrella claims. For every service we offer in the city, see Tempe insurance, or stop by our Tempe office.
An umbrella is excess liability coverage. It kicks in when an underlying policy’s liability limit is used up.
You’re at fault in a Loop 101 accident, and the other driver has $700,000 in medical bills and lost wages. Your auto policy carries 250/500 bodily injury limits, so it pays $500,000. Without an umbrella, you owe the remaining $200,000 out of pocket. With a $1M umbrella, the umbrella covers that $200,000, plus any further growth in the claim, up to $1M above your auto limits.
The same excess protection applies to:
Related:Umbrella insurance Do I need umbrella insurance if I already have home and auto? What does liability insurance cover?
Umbrella carriers require minimum liability limits on your underlying policies before they’ll write the umbrella. Requirements vary: many carriers require 250/500 auto limits, while some accept 100/300.
| Underlying coverage | Common requirement | High-net-worth carrier requirement |
|---|---|---|
| Auto bodily injury / property damage | 250/500/100 (some carriers accept 100/300) | 250/500/250 or 500/500 |
| Homeowners liability (Coverage E) | $300K | $500K |
| Watercraft liability, if applicable | Varies | $500K |
If you currently carry Arizona’s 25/50/15 minimum, you’ll need to raise your auto limits before an umbrella carrier will quote. We handle the underlying upgrade as part of the umbrella quote.
Related:Tempe auto insurance Does Arizona require auto insurance? Should I raise my liability limits when switching insurance?
Get a Tempe Auto and Umbrella Quote →
A rough rule: carry $1M of umbrella coverage for each $1M of net worth above your underlying liability limits.
| Net worth | Recommended umbrella |
|---|---|
| Up to $500K | $1M (basic asset protection) |
| $500K–$2M | $1M–$2M |
| $2M–$5M | $2M–$5M |
| $5M–$10M | $5M–$10M |
| $10M+ | $10M+ (high-net-worth carrier required) |
Higher-value homes in Maple-Ash and the Mill Avenue District push umbrella limits higher, while ASU-adjacent neighborhoods tend to skew lower. We size coverage to your net worth and underlying limits.
Umbrella is one of the most cost-effective insurance products available. Typical annual premium ranges look like this:
| Umbrella limit | Typical annual premium |
|---|---|
| $1M | $200–$400 |
| $2M | $300–$600 |
| $5M | $700–$1,500 |
| $10M | $1,500–$3,000 |
| $25M | $4,000–$8,000 (high-net-worth carrier required) |
Note: These ranges are illustrative. Rates vary by carrier, household and underlying limits, and they aren’t a quote.
Moving from $1M to $5M typically adds $400–$1,100 a year, so protection scales fivefold for well under four times the cost. For households with significant assets, that is hard to beat.
Related:Bundle policy How much liability coverage do I really need? Is this a good time to review umbrella insurance?
These are the situations that most often raise umbrella questions for Tempe households.
Many parental policies cover ASU students who live at home, drive to campus daily and travel Loop 101 and US-60 routinely. A serious at-fault accident involving a young driver can exhaust standard 100/300 limits.
A neighbor’s child gets into a Tempe pool while no one is home and is injured. Arizona’s attractive-nuisance doctrine can extend liability beyond standard trespasser rules, and a serious pool injury can produce a claim well above a typical homeowners liability limit.
Dog bites are a common source of homeowners liability claims. An umbrella can pick up where your homeowners limit stops, but some policies sub-limit or exclude certain breeds, and those restrictions can carry over, so check both policies.
If you live near Mill Avenue and host gatherings where alcohol is served, a guest’s at-fault accident on the way home can lead to social-host liability claims against you. An umbrella responds to most personal-injury fact patterns like this.
Many umbrella policies include personal-injury coverage for online defamation, libel and slander claims, which matters more as social media exposure grows.
Some Tempe households combine a pool, a dog and a teen driver: three independent umbrella-claim triggers under one roof.
Related:Tempe homeowners insurance Homeowners FAQs What happens if I cause a car accident? What Arizona insurance laws affect Tempe residents?
An umbrella is broad, but it isn’t unlimited. Standard exclusions include:
If you own a business, see Tempe business insurance for the commercial side.
Because we’re independent, we compare carriers and policy features side by side. For Tempe umbrella coverage we look at:
You get one quote sheet sized to your specific exposure.
“Lanie help me with my Home, Auto and Umbrella insurances. She was very helpful, courteous and answered all my questions.”— Miguel D., Google review
Ready to compare? Request a quote online, or call our Tempe office at 60 E. Rio Salado Parkway, Suite 9092, Tempe, AZ 85281, (480) 561-6210, or email plservice@hicksinsurance.com.
Start Your Tempe Umbrella Quote →
More Tempe coverage:Tempe homeowners insurance Tempe auto insurance Tempe business insurance All Tempe insurance services
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If you cause an accident, be prepared to pay your deductible. After you’ve done that, your insurance company should pay the remaining costs, including damages or medical expenses you caused to other parties involved.
Your business insurance needs are as unique as your business itself. While all businesses need certain types of coverage—general liability, business property, and workers’ compensation, for example—your other needs hinge on your type of business. If, for example, you use vehicles in your line of work, you need business auto insurance. Similarly, businesses that manufacture a product should consider product liability insurance. Talk to your agent to determine your exact needs.
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