Personal Umbrella

A personal umbrella insurance policy offers protection against large and potentially devastating liability claims or judgments. It kicks in when the liability limits of your other insurance policies (like auto or homeowners) are exhausted. This type of policy can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations.

Key Components
  1. Bodily Injury Liability: Covers injuries to others caused by accidents on your property, car accidents, or even injuries from your pets.
  2. Property Damage Liability: Protects against significant damage you cause to others' property, such as car accidents or accidental damage to someone's home.
  3. Legal Claims: Defends against lawsuits involving slander, libel, false arrest, wrongful eviction, and other personal liability situations.
Why personal umbrella policy:
  1. Increased Risk: If you have significant assets, engage in activities with higher risk (like owning a pool or boat), or have a higher public profile, umbrella insurance provides crucial protection.
  2. Peace of Mind: Provides confidence that your assets and future earnings are protected from major claims.
  3. Legal Defense: Assures that legal defense costs are covered in significant liability cases.
Example Scenario:

Imagine you're hosting a party at your home, and one of your guests slips on an icy patch in your driveway, sustaining serious injuries. The guest sues you for $1 million in medical bills, lost wages, and pain and suffering. Your homeowners insurance covers up to $300,000, leaving you responsible for the remaining $700,000. Without a personal umbrella policy, you would have to pay this out of pocket. With a personal umbrella policy, the additional $700,000 would be covered.

In summary, a personal umbrella insurance policy acts as a financial safety net, providing extensive liability protection and peace of mind against substantial and unforeseen claims, ensuring your assets and future earnings are safeguarded.