Extra Liability Protection for Residents and Families
Personal umbrella policies are designed to provide liability protection over and above the liability limits shown on your auto, home, cycle, all-terrain vehicle, snowmobile, and boat insurance policies. The underlying policies are listed, and a charge is made for each exposure. A liability limit of $1,000,000 is the most common amount of coverage purchased. Higher limits of $2,000,000 up to $5,000,000 are frequently available. The liability limits of the underlying policies must meet the requirements of the insurance company writing the umbrella. Generally, the insurance company writing the umbrella will require that they also provide coverage for the underlying policies.
Optional Uninsured & Underinsured Motorist Coverage
You can add uninsured and underinsured motorist coverage to an umbrella policy. This would provide extra coverage should you or a family member be injured by an uninsured or underinsured driver who was at fault. Adding this coverage can double your umbrella premium. Adding the uninsured and underinsured motorist coverage to an umbrella policy is optional.
Broader Coverage Benefits
Mostly speaking, a personal umbrella can provide slightly broader coverages than the underlying policies. Providing worldwide protection is an example of this broadening of coverage. Personal umbrellas are not designed to cover business exposures.
Why Financial Advisors Recommend It
If you ever hire a financial advisor or if you listen to financial advisors on the radio, they will universally recommend this coverage.
*The above descriptions are generalizations and should not be relied upon when determining coverage. You must refer to the actual policy wording when determining whether or what type of coverage applies.
DISCLAIMER: If you need a policy updated or changed, please contact your respective agent.