Personal Umbrella Insurance
Extra liability protection coverage
Personal umbrella insurance is a contract between the policyholder and an insurance company, intended to provide additional financial protection beyond the limits established in the insured's auto, homeowners, or boat policies. It is essential for anyone who wants to protect their assets and financial stability against high-value lawsuits or claims, offering an additional layer of security when traditional coverage has been exhausted.
To be eligible, the insured must maintain certain minimum liability limits in their base policies, based on the following criteria:
- $300,000 per person / $300,000 per incident (bodily injury), and $100,000 for property damage, or
- $250,000 per person / $500,000 per incident (bodily injury), and $100,000 for property damage.
- Minimum liability of $300,000.
- Boats under 26 feet and under 50 hp: minimum liability of $100,000.
- Boats 26 feet or longer, or 50 hp or more: minimum liability of $300,000.
How does a personal umbrella policy work?
- Umbrella insurance kicks in once the primary policy limits have been reached.
- For example, if a driver causes an accident and is sued for $500,000, but their auto policy only covers up to $300,000, the umbrella policy can cover the additional $200,000, preventing significant financial losses and protecting your personal assets.
- This policy does not replace existing coverage; it acts as an extended backup, providing financial security against high-impact unforeseen events.
*It is important to keep in mind that the terms and conditions of the insurance companies may vary for each coverage. Therefore, it is essential to review carefully to fully understand the extension and any exclusions that may apply.
