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An Umbrella Policy will provide broader coverage than found in the underlying policies. It provides additional / higher limits of liability protection. It affords broader coverage for exposures not covered by underlying policies. A Personal Umbrella Liability Policy offers coverage over and above the limits of the underlying personal insurance policies. You should buy enough liability insurance to protect your assets. If you own property and or have investments and savings that are worth more than the liability limits in your policy, you may consider purchasing an umbrella policy.

Umbrella policies provide expanded coverage. They start to pay after you have used up the liability insurance in your underlying home or auto policy. An umbrella policy is not part of your homeowners or auto policy. You must purchase it separately. In addition to providing a higher dollar amount, they offer broader coverage. You are covered for libel, slander, and invasion of privacy. These things are not covered under standard homeowners or auto policies.

The cost of an umbrella policy depends on how much underlying insurance you have and the kind of risk you represent. The greater the underlying liability coverage, the less expensive the policy will be since you would be less likely to need the additional insurance.

If someone alleges you were negligent for an incident that causes injury, legal fees may be extremely high even if the verdict is in your favor. This policy provides coverage for legal defense costs for a covered loss.

You May Need a Personal Umbrella Liability Policy if:

• You have total assets greater than underlying liability limits
• You are financially responsible for the actions of a young, inexperienced driver
• You perform extensive volunteer work for nonprofit organizations
• You frequently host guests on your property
• Your residence includes a swimming pool
• You own a watercraft

What is Self-Insured Retention?
If an umbrella policy provides coverage for circumstances that are excluded by an underlying policy (such as Personal Injury under a homeowners policy), the insured pays a selected retention limit, typically between $250 and $10,000 which acts like a deductible, and the insurance company pays the loss over that amount.

Additional Advantages:

• Your Personal Umbrella Liability Policy provides Personal Injury and Property Damage protection:
  • Against libel, slander and defamation of character
  • Against mental anguish or mental injury
  • And while serving on a board, or as an officer of a religious charitable o nonprofit organization as long as it does not involve your business or profession

Since your other insurance policies would pay first, Personal Umbrella Liability insurance is relatively inexpensive in view of the degree to which it protects your lifestyle. The premium is based on the limits selected, your number of autos, residences, boats, etc. and the area where you live.

Should I purchase an umbrella liability policy? If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgments against you and your attorney's fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That's what a personal umbrella liability policy provides. An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander. Since the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.