What is a PERSONAL UMBRELLA POLICY?
A. A personal umbrella policy is designed to increase your liability protection. This policy provides additional liability insurance over other personal insurance policies (Auto insurance, Homeowners insurance, Boat insurance, etc.). This allows you to purchase higher limits of liability than your other policies may allow.
It is an excess liability policy that provides coverage over your personal property, home, automobile, boat, motorcycle, etc. Generally, the policy limits are offered between $1 million and $10 million. The underlying insurance on your personal property must meet the specific guidelines set forth by the insurance carrier. Liability coverage pays on behalf of the insured the sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage.
The purpose of a personal liability policy is to increase your liability protection. This policy provides an extra layer of liability coverage over your existing liability policies—auto, home, RV, watercraft, etc. In certain situations, your umbrella policy may even provide personal liability coverage that is excluded under your other liability policies.
