Your Homeowners, Personal Automobile and Watercraft policies provide your primary or first layer of liability coverages associated with the ownership and use of these types of assets. Most primary liability limits on these policies will begin at $100,000 up to $1,000,000 per occurrence.
What happens if you are in an at-fault incident and the other party is awarded damages greater than the amount of the liability that you carry in the primary policy? The amount of above your limit of insurance then is subject to your personal assets – your savings and investments, your earnings and your home. In today’s environment it is not difficult to imagine causing injuries to someone in an accident where the expenses and damages may exceed the limits in a primary policy of $100,000 or even $500,000.
A Personal Umbrella Policy was designed to provide Worldwide coverage in excess or over the liability limits maintained in the associated primary policy subject to certain minimums – generally $300,000 on a Homeowners policy, $300,000 on a Watercraft policy and up to $500,000 per occurrence/$500,000 per accident on an Auto Policy. If these primary limits are exhausted in satisfying the legal liability in an incident, then the Umbrella or Excess Liability limit is available to satisfy these amounts up to the amount of the Personal Umbrella Liability limit.
These limits may range from $1,000,000 to $50,000,000 or more. The amount of liability needed, and available depends on the assets the insured is attempting to protect from an unexpected and unintended covered event. Again, in today’s environment virtually everyone could need the protection of at least a $1,000,000 liability policy with minimum premiums ranging from $100 to $250 depending on the exposures. Higher limits are subject to underwriting approval.
A Personal Umbrella is only meant to protect against excess liability exposures resulting from the related underlying personal insurance policies, and does not offer any coverage or protection for business or commercial related exposures. If a vehicle or watercraft, or its use, does not qualify for a personal auto or watercraft policy, then the Personal Umbrella will not respond.
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