Personal Umbrella Insurance – The Basics
One of the side effects of working in the insurance industry for years is the tendency to point out things that could lead to a liability claim, literally everywhere. Although it could be annoying, the fact is that the possibilities exist. Policies such as Automobile and Homeowners insurance provide liability coverage up to certain limits, but then there is also Personal Umbrella Insurance. Personal Umbrella Insurance is a secondary policy that kicks in after the limits of the primary policies (such as auto insurance) have been exhausted. It covers over the primary policies that satisfy the minimum liability limits required by the Personal Umbrella insurance company.
A Personal Umbrella policy may provide secondary coverage for bodily injury, property damage, personal injury and the cost of legal defense. The amount of coverage available starts at $1 Million to $2 Million and can go up. Generally, the annual cost of Personal Umbrella Insurance is very low and worth the excess coverage.
An example of how a Personal Umbrella policy can work is below:
Scenario: You are in a car accident that was your fault. The accident results in bodily injury to another driver and property damage to the driver’s vehicle. You have auto insurance, but the medical expenses and cost to replace the vehicle that you are liable for exceed the limits of your auto policy.
Solution: Personal Umbrella Insurance. A Personal Umbrella policy would kick in after the primary insurance policy has been exhausted.
Talk to an insurance professional to learn more about Personal Umbrella Insurance. It’s worth your time. For more information click here to contact Gigi or call her today at 561-254-4648