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Umbrella Insurance

Umbrella insurance | personal umbrella insurance coverage available from top insurance companies and approved providers. What is personal umbrella insurance coverage and what is an umbrella insurance policy. What is the difference between excess liability insurance and umbrella insurance by definition. Personal umbrella insurance takes it's name because it acts like an umbrella to provide additional financial protection or cover over and above that which is afforded by your regular homeowner and automobile policies.

Umbrella insurance is designed to provide for increased personal liability limits well beyond those provided under a standard home or auto policy. The idea is to provide enough protection for ones assets and future earnings in the event of a judgment against you for liability.

umbrella insurance policy

The umbrella insurance policy picks up the difference where the liability limit of a home or automobile policy has been reached.

Example: you are facing an $800,000 judgment for an automobile accident injury for which you were deemed at fault. You have a $300,000 bodily injury liability limit on your motor policy. In such case, your umbrella insurance policy picks up the difference to meet the $500,000 shortfall. The same shortfall approach applies to a judgment for an accident scenario on your property, covered under homeowner liability coverage.

Umbrella Insurance PolicyPersonal umbrella insurance coverage is designed to safeguard financial assets which may be pursued in the event of original policy shortfall and is a form of secondary insurance. Personal umbrella insurance coverage may include legal expenses for attorney's fees and other defense costs, on top of the umbrella insurance policy amount. There may be cover for lost income as a result of any court attendance.

An umbrella insurance policy may also extend cover for dependent children. Umbrella insurance quotes are typically based on $1-5M liability limit policies. Personal umbrella insurance quotes may also include cover for claims of libel, slander and defamation of character in the form of personal injury coverage and a general extension of coverages for international incidents.




It is important to understand that umbrella insurance does not provide cover if you commit a crime (such as DUI) or intentional willful or malicious acts (such as harassment). Because umbrella insurance is a personal policy, it does not cover any situations related to business operation. There is no cover for high risk activities including, for example dangerous motorsport pursuits.

Excess liability insurance and umbrella insurance are terms often used interchangeably to imply the same thing, however there is a subtle difference. Excess liability insurance is designed to extend liability limits beyond the base automobile and home policies, according to the same claim qualification criteria, coverage and restrictions. In some cases an excess liability insurance policy may be more restrictive than the underlying base policies. Umbrella insurance is distinct in that it broadens coverage in ways beyond the base policies and is less restrictive. There are underlying eligibility requirements for umbrella insurance which relate to the base policies. In each state and for each insurer, one needs to have a certain amount of existing coverage on their automobile and home policies in order to qualify for an umbrella insurance policy. This may be for example, auto-BI $250,000 and auto-property $100,000 and homeowner liability $300-500,000. There is no requirement to buy personal umbrella insurance coverage from the same company with whom you have a base policy or policies. Most insurers offer stand-alone umbrella insurance rates. As in all cases, shopping around for the best umbrella insurance rates is important. Get a free umbrella insurance quote from top insurers who may offer personal coverage quote discounts here online today.


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