A personal umbrella policy is generally designed to provide an additional layer of liability protection above the limits of your existing home and auto policies.
How an Umbrella Works
When a covered liability claim exceeds the limits of your underlying home or auto policy, an umbrella policy may help provide additional coverage above those limits, up to the umbrella’s own limit.
Who Might Consider One
Umbrella coverage is often considered by those who want an added measure of protection for their assets, including families, homeowners, and anyone with exposures that could lead to a larger liability claim.
A Cost-Effective Consideration
Because it sits on top of existing policies, umbrella coverage is often viewed as a relatively efficient way to add meaningful liability protection. An independent agent can help you determine appropriate underlying and umbrella limits.
Key Takeaways
- Umbrella coverage adds liability protection above home and auto limits.
- It responds when an underlying policy’s limits are exceeded on a covered claim.
- It is often considered by those looking to protect their assets.
- Appropriate underlying limits are typically required.
This article is provided for general educational purposes only and does not constitute insurance advice or a recommendation. Coverage is subject to the terms, conditions, exclusions, underwriting requirements, carrier eligibility and state availability of each policy. Please talk with us about your specific situation.
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