A personal umbrella policy is an important part of your personal insurance package. It will provide additional liability coverage over your other personal lines policies to protect your assets and future income by increasing liability limits and adding coverages that are excluded on an underlying policy. Limits for an umbrella are usually available in $1 million increments up to $5 million, but can be available for even higher limits.
How does a personal umbrella protect me?
If your personal lines policy limits are not sufficient to cover a judgment, you are responsible for the balance! If you are sued for $1,000,000 as the result of an incident that takes place at your home, and your homeowners policy liability limit is $300,000, your homeowners policy will pay up to the limit of $300,000 and your umbrella policy would pay the remainder of the settlement, or $700,000. A personal umbrella policy will protect you if you own a vehicle, own or rent a home, or own toys (motorcycles, ATVs, RV, or watercraft). When you apply for umbrella coverage you will need to identify all of your liability exposures, even if they are not written with West Suburban Insurance.
Here are some examples of when a personal umbrella would be used:
- Your child posts a message on social media about another person. They claim the post is defaming and they sue you for more than the limit of your homeowners/renters/condo policy.
- You serve alcohol at a party and on the way home one of your guests, who had too much to drink, is involved in an accident and you are sued for more than the limit of your homeowners/renters/condo policy.
- An occupant on your boat/ATV/motorcycle falls and hurts themselves and you are sued for more than the limit of your boat/ATV/motorcycle policy.
- Your dog jumps up on a neighbor and knocks them down hurting them and you are sued for more than the limit of your homeowners/renters/condo policy.
- You are at fault in a tragic auto accident and you are sued for more than the limit of your auto policy.
- You lend your bicycle to a friend and they are hurt because the bicycle malfunctions and you are sued for more than the limit of your homeowners/renters/condo policy.
An umbrella policy can also provide additional coverage for personal injury and coverage worldwide that might otherwise be excluded on your underlying policies.
We strongly recommend a personal lines umbrella for all customers!