Umbrella Protection

Let's say you have a policy for your home and your family's cars. You have just the right policy for the apartment you rent out to others as well as coverage for your boating excursions. Your homeowner's policy even has a special, added protection for the business that your spouse runs out of your home. While it looks like you have all the coverage you need; perhaps you should consider... an umbrella. 

Umbrellas are designed to be carried over a person's primary (also known as underlying) liability coverage. Primary refers to the fact that in the event of a loss, the liability portion of your auto or homeowner (including renters and condos) coverage is the first to respond. Umbrellas or excess liability policies respond to an eligible loss only after the primary insurance has paid its limit. 

For instance: 

  • Your newly licensed teen is driving the family car and slides on an icy highway. He ends up causing a chain collision damaging several cars and injuring drivers and their passengers. 
  • Maybe you often volunteer to help transport members of your child's class on field trips and you have an accident.
  • If you don't have enough primary coverage, any shortage may have to come out of your personal assets or future earnings.

Umbrellas cover defense costs, judgments and court costs and generally provide additional liability coverage for the following underlying policies: