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Personal Umbrella/Excess Liability Policy
Personal Umbrella Liability insurance is designed to provide an additional layer of personal liability protection beyond what is already offered by your personal insurance policies. It offers coverage for claims such as bodily injury, property damage, and personal injury. This coverage is designed to protect your assets and provide financial security in the event of a lawsuit or claim.
Example: You're involved in an auto accident and found to be at-fault. Unfortunately, you are sued and the court awards the other party 1 million dollars for their injuries. Your auto policy maximum bodily injury limit is 300,000.
Without 1 Million Umbrella Policy
Court awards other party: $1,000,000
Your Auto Bodily Injury Liability Limit: $300,000
Auto Policy pays $300,000
Gap in coverage(you still owe) $ 700,000
With 1 Million Umbrella Policy
Court awards other party: $1,000,000
Your Auto Bodily Injury Liability Limit: $300,000
Your Umbrella Liability Policy Limit $1,000,,000
Your Auto Policy Pays $300,000
Your 1 Million Umbrella Liability pays $700,000
Total paid by Insurance Policies: $1,000,000 (No Gap in Coverage)