What is Personal Umbrella Insurance Coverage?
Personal Umbrella Coverage is broad protection (like an umbrella) against financial catastrophe that could strike your family if someone brings a successful liability suit against you for a large sum. Personal Umbrella protection does not replace your Homeowner, Automobile or Comprehensive Personal Liability policies. It’s designed to supplement these policies.
A personal umbrella policy could protect you against excess liability judgments for loss, injury, or even death caused by negligent acts. It is designed to provide liability protection over and above the insurance policies you currently have.
Why do I need more insurance?
You may say, “We have car insurance and homeowner’s coverage. That should be sufficient. Why would we need a personal umbrella policy?”
In today’s society, lawsuits are occurring with alarming frequency. Moreover, the monetary awards can be staggering. Your current insurance can protect you against a minor misfortune—but it probably would not give you the needed protection against a catastrophic loss.
How much insurance is enough?
To ensure that you’re protected against the unknown, resetting liability policy limits can be as critical as reallocating invested assets.
You likely have liability coverage—auto, homeowner’s and/or watercraft. In the event of an accident, these can offer you protection for both bodily injury and property damage—but only up to your policy limit. Beyond that, you would be responsible for paying the excess amount for which you are liable. That excess amount could be several million dollars!
Besides providing increased liability limits, a personal umbrella policy can give you these additional benefits:
• Coverage for defense costs and attorneys’ fees associated with claims against you that are covered by your personal umbrella policy but not by your primary policies. These expenses are paid in addition to your policy limit.
• Protection for a covered loss that takes place anywhere in the world.
• Coverage for several personal injury hazards such as libel, slander, false arrest, humiliation, defamation of character, false imprisonment, wrongful eviction, wrongful detention, malicious prosecution or invasion of privacy.