“Personal Umbrella Insurance” is a policy
that provides an additional layer of liability coverage over and above your
underlying home and auto liability coverage limits. Personal Umbrella coverage can protect your
assets and future income in the event of a catastrophic loss. The following are a few FAQs you should know
about Personal Umbrella coverage:
1. What is Personal Umbrella Insurance? Personal Umbrella is a coverage that provides an additional
layer of liability coverage (typically starting at $1 million in coverage
limits) for claims that exceed your underlying home and auto liability
insurance limits.
2. Why should I consider Personal
Umbrella coverage? I recommend considering adding a Personal
Umbrella policy when you have unique exposures (e.g. owning a swimming pool)
and/or when you have assets and future income to protect from tort claims,
lawsuits and/or judgments.
3. When might a Personal Umbrella policy
offer coverage? If you
are sued or have a third-party claim against you and your home or auto
liability limits are exhausted, a Personal Umbrella can cover you up to its
coverage limits.
4. What are the requirements for
purchasing a Personal Umbrella? Typically, most
insurers require that your underlying home and auto liability insurance limits be
a minimum of $300,000 to $500,000 before you can qualify for a $1,000,000
umbrella policy limit.
5. Will a Personal Umbrella policy cover
liability exposures other than home and auto?
Yes. Generally, a Personal Umbrella policy will
coverage exposures from your use of boats, motorcycles or recreational vehicles
as long as those exposures have underlying liability coverage and those
policies are listed on the Personal Umbrella.
If you have additional questions regarding Personal Umbrella Insurance, please
stop by my offices in McKinney, Texas or give me a call at (972) 727-9111.
Stan Polk, CPCU – Agency Owner
6951 Virginia Parkway, Suite 316
McKinney, Texas 75071
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I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.
