Multistate umbrella policy

[Evangeline O'Dowd]

I live in North Carolina and have a rental property here in NC, Alabama and Florida. I would like to get an umbrella policy that covers all the properties in the three states. Does anyone know if that is possible? 

[Lauren Robins]

Yes, it is absolutely possible to get an umbrella insurance policy that covers rental properties across multiple states, including North Carolina, Alabama, and Florida. Many real estate investors with multi-state portfolios use a single umbrella policy to provide additional liability protection beyond what their individual landlord or homeowner insurance policies cover. However, there are some important considerations and requirements to keep in mind.

First, insurers will typically require that each underlying property has its own liability insurance—either through a landlord policy (also called a dwelling fire policy) or a homeowners policy if it’s owner-occupied. Your umbrella policy sits on top of these individual policies and extends coverage once their liability limits are exhausted. So, you’ll need to ensure each property meets the minimum liability coverage required by the umbrella provider, often $300,000 or $500,000 per property.

Second, not all insurance companies operate in every state or are willing to underwrite umbrella policies across state lines. For this reason, it’s generally better to work with a national insurer (like State Farm, USAA, Nationwide, or Travelers) or an independent insurance broker who can piece together policies from different carriers and still coordinate an umbrella policy that sits over them all. Brokers can be especially helpful if your base policies are already split among different providers.

Additionally, umbrella policies may exclude certain types of risks or entities, such as properties held in LLCs or short-term rentals, unless explicitly disclosed and underwritten. Be sure to let your agent know the ownership structure of each property and whether any of them are rented short-term (like Airbnb), as that may affect coverage or require specialty riders.

The cost of an umbrella policy is usually quite reasonable—often $200–$400 per year for the first $1 million in coverage—with modest increases for each additional million. It’s a small price to pay for substantial peace of mind, especially if you have equity to protect and properties spread across multiple jurisdictions.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.