Personal Umbrella or "Excess Coverage"
Umbrella insurance is the "topper" for all liability insurance. It extends the limits of your automobile, homeowners, and other property coverages.
Umbrella coverage is generally low in cost because of the infrequency of losses. But it's an essential component in any asset protection portfolio to cover losses of catastrophic proportion.
What's covered under Personal Umbrella Liability Insurance?
Here are some examples of claims that an Umbrella policy would cover—
- An insured has an auto accident while driving in Europe. His or her personal auto policy covers accidents only in the US and Canada
- An insured borrows her friend's Herend china (very expensive) and breaks several pieces
- A member of the Board of Directors of the local Elks Club is sued by some dissatisfied members over Board decisions
- The insured rents an inboard motor boat while at the Jersey Shore and seriously injures a water skier
- A member of the Town Council accuses the Zoning Board of corruption and is subsequently sued by the Zoning Board
- An insured has an auto accident, injures a child, and is sued for limits beyond her auto policy's limits
What's required for Umbrella coverage?
To qualify for an Umbrella policy, you must first purchase underlying liability coverage, such as auto or homeowner's insurance.
The underlying policy's terms then become part of the Umbrella policy. The Umbrella coverage kicks in either after the underlying policy's limits are exhausted or if the underlying policy does not cover the loss at all.
For more information, call one of our specialists at 732.282.2700. We're happy to help.