A Personal Umberlla Insurance Policy is extra liability insurance above the level of your existing Auto Liability or Home Liability insurance, usually sold in increments of $1,000,000. It is called umbrella coverage because it extends liability protection over all your insured personal vehicles, RVs, motorcycles, boats as well as owned properties such as investment rental properties, vacant land, secondary or vacation homes for which you have insurance.
If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney's fees, up to a limit set in your auto or home insurance 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 may also cover you for things such as libel and slander.
Because 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 $500,000 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 or higher of additional coverage.
The Personal Umbrella Policy extends coverage over all your insured personal vehicles, RVs, motorcycles, boats as well as owned properties such as investment rental properties, vacant land, secondary or vacation homes for which you have insurance.
Let Stephen B. Groton, California Insurance help you find peace of mind through increased protection against liability risks.