Umbrella Policy: “State Farm Umbrella: Specifically Adding PEVs.”

I realized my renters insurance liability limit was only $100,000. If I permanently disabled a pedestrian, I’d be ruined. I went to State Farm to buy a $1 Million Umbrella Policy. The agent said, “Sure, but we need to verify your underlying exposures.” When I mentioned the E-Bike, the underwriting process got complicated.

Key Takeaways

• The “Gap” Protection: Umbrella picks up where your primary liability stops. It is the cheapest way to get 1M+coverage(usually 1M+coverage(usually  150/year).
• Underlying Limits Required: You usually need to max out your auto ( 250k/250k/ 500k) and renters ($300k) limits before they will sell you an umbrella.
• The PEV Exception: Most umbrellas exclude “Recreational Vehicles” unless they are endorsed on the underlying policy. If your renters policy excludes the board, the Umbrella usually excludes it too.
• “Follow Form”: Umbrella policies typically “follow the form” of the primary policy. If the primary says NO, the umbrella says NO.

The “Why” (Catastrophic Loss)

Medical bills for brain injuries can hit $500k easily. $100k renters liability is not enough in 2026.

The Investigation: Getting the Endorsement

I tried to get a State Farm Umbrella to cover an E-Bike.

1. The Requirement

• State Farm: Required me to raise my Renters Liability to $300,000.

2. The Verification

• Question: “Do you own any recreational vehicles?”
• Answer: “I own a Class 2 E-Bike.”
• Outcome: They accepted it because Class 2 E-Bikes were covered under their standard renters policy.
• Twist: If I had said “Onewheel,” they might have flagged it as a “Motor Vehicle” requiring a separate policy.

3. RLI (Standalone Umbrella)

• Outcome: RLI is stricter. They often demand a specific list of vehicles. If it’s not an auto, they might exclude it.

Comparison Table

Coverage Level	Cost per Year	Covers Serious Injury Lawsuit?
$100k Renters	Included	No (Assets seized)
$300k Renters	+$20	Maybe
$1M Umbrella	+$150	Yes (Peace of mind)

Step-by-Step Action Plan

1. Max Your Primary: Call your renters agent. Increase liability to $300k or $500k. It costs the price of a pizza.
2. Ask “Follow Form”: Ask specifically: “If my renters policy covers my bike, does this Umbrella also cover it?”
3. Get it in Writing: Umbrella exclusions are tricky. Read the “Recreational Vehicle” exclusion paragraph.

FAQ

Do I need umbrella if I have no assets?
They can garnish your future wages. If you plan to make money in the future, yes.

[IMAGE: Graphic illustrating an Umbrella shielding a house and car from a “Lawsuit” rainstorm]