Personal Umbrella Insurance
  • Overview
  • What It Covers
  • Learn
  • FAQs
Overview

Umbrella liability provides coverage over and above the limits of an insured's primary policies such as automobile, homeowners and watercraft. The main purpose of this policy is to protect an individual who has significant assets.

The Umbrella policy states that the coverage provided will always be at least as broad as that of the required underlying policies. Select any of the following tabs to learn more about what an Umbrella insurance policy to provide you. You can even request a quote when you're ready to better protect your financial assets.

Umbrella liability coverage can provide protection in certain cases when primary policies might not. When an Umbrella policy acts like a primary policy, the policyholder must first assume a retained limit (deductible) amount before coverage begins.

Umbrella liability offers:

  • Coverage in $1 million increments up to $5 million
  • Credits for higher retained limits (deductibles)
  • Easy to read policy language

Auto and Homeowner Liability Limit Requirements

Most insurance companies require at least a minimum bodily injury limit of $100,000/$300,000 on your personal auto insurance policy and a property damage limit of $300,000 on your homeowners (renters and Condo included) insurance policy to qualify for an umbrella policy. Many instances they require at least $500,000 liability on both.

Basic Policy Coverages
Coverage
Description
Bodily Injury Liability
Covers the cost of damages to another person's body. Examples include the cost of medical bills and/or liability claims

Coverage limits: $1,000,000 - $5,000,000

Property Damage Liability
covers the cost of damage or loss to another person's tangible property.
Rental Unit Liability
Protects against liability that you may face as a landlord.
Other
Coverage also available for protection against being sued for: slander, libel – injurious written statement,* false arrest, detention, or imprisonment, malicious prosecution. shock/mental anguish, and other personal liability situations.

Learn About Umbrella Insurance

Umbrella insurance protects you, your family and your assets in the event that you are held personally liable for a claim. A Personal Umbrella Policy protects you from major claims and lawsuits in two ways:

    1. Provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies.

    2. Provides coverage for claims that may be excluded by other liability policies including: false arrest, libel, slander, and liability coverage on rental units you own.

In an event of a loss, you would first exhaust your home, auto, or boat liability coverage, and then the umbrella policy would begin providing coverage. For a relatively modest cost, a Personal Umbrella Policy provides the extra layer of liability protection that is so vital to protecting your assets and lifestyle.

How To Determine If You Need A Personal Umbrella

Do you own your home?

Do you own any significant assets in addition to your home?

Have you built an investment portfolio or retirement savings account?

If you can answer "yes" to any of these questions, then you should consider purchasing a Personal Umbrella Policy.

Take these easy steps to determine the amount of Umbrella coverage you need.

Step 1: Add up your assets - the worth of your home, money in the bank, stocks, bonds, other assets, and available funds from a 401(k) or other retirement plan.

Step 2: See how much liability coverage you have on your homeowners, auto, and boat policies.

Step 3: Determine if your current liability policies cover your assets. Are You Adequately Protected? If you don't have protection that exceeds your assets, you need to consider an umbrella policy. And, if you have an umbrella policy you should reevaluate to determine if you should raise your limit.

Frequently Asked Questions
Question
Answer
If I get sued by a tenant will an Umbrella policy help protect me?
Yes. An Umbrella Policy helps protect landlords from tenants being injured within your rental property and possibly the actions of your tenants causing injury to others.

If you have a question that isn't answered here please submit it to us using our Ask An Expert forum!

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