If someone is injured on your property, or because of an accident you caused, you’ll likely be held liable. And, what if the settlement or judgment costs you more than what your home or auto policy covers? How will you pay?
Standard homeowners and auto policies provide only minimal liability coverage, which can put the cumulative value of your home, vehicles, savings and investments at risk.
A Personal Umbrella policy provides extra liability protection by extending the limits of your auto, home or boat policies. Should you be named in a lawsuit, a personal umbrella policy will cover defense costs, attorney fees and other charges associated with a lawsuit that exceeds the limits of your basic policies.
A Personal Umbrella policy kicks in once your basic liability policy limits have been exhausted, or if the claim is excluded from your basic policy. Once the limits of your Personal Umbrella Policy are exhausted, you’re responsible to pay the remainder of the claim out of pocket. Even you’re found not responsible, your Personal Umbrella policy will still pay your legal expenses.
The following items are covered by your Personal Umbrella policy?
Legal defense fees
Medical bills, including therapies
Lost wages for the injured
The following items are NOT covered:
Injury to the insured. A Personal Umbrella policy only covers bodily injury or property damage to others, not yourself.
Intentional acts. If you harm or injure someone intentionally (not including self-defense), the resulting claim will not be covered by a Personal Umbrella policy.
Business actions. Personal Umbrella policies do not cover you in business, even if you’re the business owner. Instead, business liability policies exist for this purpose, including: Directors and Officers Insurance, Employment Practices Liability Insurance, General Liability Insurance, Professional Liability Insurance and more.