What is a Personal Liability Umbrella Policy?
Lawsuits are common today. If you accidentally injure someone or damage their property, you could be sued. And more and more, juries are awarding very large verdicts. Your homeowners, property and auto policies may provide substantial liability limits, but juries can award sums that exceed those limits.
A Personal Liability Umbrella insurance acts like an umbrella, providing additional coverage on top of your auto and homeowners liability policies. It supplements your existing policies to provide additional personal liability protection.
The Umbrella policy goes into effect after the underlying liability limits on your homeowners or auto policy is exhausted. Therefore, your policy must have certain limits in order to qualify for an Umbrella policy.
Auto Insurance Liability Limits:
- $250,000 bodily injury per person
- $500,000 bodily injury per occurrence
- $100,000 property damage per occurrence
Homeowners Insurance Liability Limits: $500,000
The policy provides:
- Liability insurance that adds to the limits of your automobile, homeowners and recreational vehicle or boat liability policy limits.
- Coverage for unknown or unexpected exposures that are excluded in typical auto, homeowners, recreational vehicle or boat liability policies.
Coverage for the cost of your legal defense. This includes court costs, interest on judgments and premiums on necessary bonds.