Personal Umbrella Coverage
Personal Umbrella Coverage protects your financial interest by adding additional liability coverage limits over your personal automobiles, homes, boats, vacant properties, condos, or any other personal insurance policies. This protection responds to higher limits of liability that you or your family may face as a result of accidental injury to others and unintended property damage for which you become legally responsible and your primary policy limits is not enough to cover the damage.
Court and jury awards can be large. Personal Umbrella Coverage is designed to protect your assets and income. Individuals with significant assets and income should give serious consideration to supplementing underlying personal liability policies with a Personal Umbrella Policy.
The personal umbrella liability policy requires that the insured continue in force coverage on the policies listed in the schedule of underlying insurance. They must be kept in force, without alteration of terms and conditions, during the term of the umbrella liability policy
Determining the right amount of coverage is a personal decision and usually depends on the dollar amount of personal assets you need to protect. Professional people and high earning individuals have more exposure to adverse judgments because of their accumulation of wealth.
Examples of Claims that could be covered by Personal Umbrella Coverage
Your neighbor dove into your swimming pool and broke his neck, your homeowners would pay the first $300,000 of liability (if that was your homeowner’s liability limit) and the umbrella liability coverage would be available to pay the rest (including legal fees) up to the umbrella policy limit.
You have an accident that is your fault – your car seriously injures a highly paid business executive and he is disabled and unable to continue his employment. A jury awards him millions of dollars and you are responsible for payment.