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Glossary

Attachment Point: Where Your Umbrella Starts Paying

By LiabilityGap EditorialUpdated 2 min read

The short answer

The attachment point is the dollar level where an excess or umbrella policy begins to pay — normally the exact limit of your underlying home or auto policy, commonly $1 million or $2 million for Canadian households. Below it, your underlying insurer pays; above it, the excess or umbrella layer takes over, up to its own limit.

The attachment point is the dollar level where an excess or umbrella policy begins to pay — normally the limit of your underlying policy, which for Canadian households is commonly $1 million or $2 million. Liability coverage is built in layers: your home or auto policy pays from the first dollar up to its limit, and the umbrella "attaches" at that limit and pays above it, up to its own.

Picture a $2.5 million judgment against a driver with a $1 million auto limit and a $2 million umbrella attaching at $1 million: the auto insurer pays $1 million, the umbrella pays the remaining $1.5 million, and the driver pays nothing. The attachment point is the seam between the two policies — and the whole system depends on that seam being tight.

Why it matters to you#

The attachment point must match your actual underlying limit, exactly and continuously. There are two common ways the seam opens. Mismatch at purchase: an umbrella written to attach at $2 million over an auto policy carrying $1 million leaves a $1 million layer with no insurer in it — and that layer is yours. Drift after purchase: you switch auto insurers and the new policy is written at a lower limit, or you trim a limit to save premium. The umbrella still attaches where its contract says, so a large judgment reaches you before it reaches the umbrella. The fix costs nothing: whenever any base policy changes, tell the broker who placed your umbrella. Attachment points aren't a reason to skip excess coverage — a first $1 million of umbrella typically runs about $200–$300 per year (an estimate, not a quote) — they're a reason to buy it through someone who checks the seams.

In practice#

  • $1 million auto limit + umbrella attaching at $1 million: the layers stack cleanly.
  • $1 million auto limit + umbrella attaching at $2 million: you own the middle million.
  • Below the attachment point, your underlying insurer pays — the attachment point is a boundary between insurers, not a deductible you pay.
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Frequently asked questions

What is an attachment point?

The dollar amount of loss at which an excess or umbrella policy starts to pay. It normally equals your underlying policy's liability limit — for Canadian households, commonly $1 million or $2 million.

What happens if my underlying limit is below the attachment point?

You personally pay the layer in between. If your umbrella attaches at $2 million but your auto policy only carries $1 million, a large judgment leaves you owing the second million yourself.

Is the attachment point the same as a deductible?

No. A deductible is an amount you pay on covered claims. The attachment point is the level where the excess layer begins — below it, your underlying insurance is expected to pay, not you.

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