What is Personal Liability Umbrella coverage?

Personal Liability Umbrella Coverage protects you for liability claims that are in excess of the protection offered by your primary insurance, such as the Homeowners, Auto, Watercraft etc. insurance. It supplements your primary liability coverage, when the claims are big enough to fall outside the specific coverage provided by your primary insurance.

For example, your Homeowners insurance policy is the primary insurance to cover any claims made against you, when someone is hurt on your property. However, If the amount of the claims is greater than what is provided by your homeowners policy, then an Umbrella Policy will cover the gap up to its limit.

What it means is, if you have $500,000 liability coverage on your homeowners policy and a $1 million coverage on your umbrella policy, then you have a total liability coverage of $1,500,000. So if a claim is made for $700,000 then your homeowners insurance covers the first $500,000 of the claim and your umbrella coverage provides for the rest of the liability.

In addition to covering the gap between your coverage and liability; Personal Liability Umbrella Coverage also covers a wide range of losses; such as:

  • Physical Injury – Medical costs, loss of income, funeral expenses in case of death of those involved in the accident.
  • Personal Injury – In case you face a false arrest; claim by other’s for libel, slander, humiliation or defamation etc.
  • Property Damage – Liability arising out of damage to someone else’s property, including the loss of its use.
  • Landlord Liability – Physical injury to, or property damage of your tenant.