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> UMBRELLA LIABILITY POLICY
An Umbrella Policy will provide broader coverage
than found in the underlying policies. It provides additional /
higher limits of liability protection. It affords broader coverage
for exposures not covered by underlying policies. A Personal Umbrella
Liability Policy offers coverage over and above the limits
of the underlying personal insurance policies. You should
buy enough liability insurance to protect your assets. If you own
property and or have investments and savings that are worth more
than the liability limits in your policy, you may consider purchasing
an umbrella policy.
Umbrella policies provide expanded coverage. They
start to pay after you have used up the liability insurance in your
underlying home or auto policy. An umbrella policy is not part of
your homeowners or auto policy. You must purchase it separately.
In addition to providing a higher dollar amount, they offer broader
coverage. You are covered for libel, slander, and invasion of privacy.
These things are not covered under standard homeowners or auto policies.
The cost of an umbrella policy depends on how much
underlying insurance you have and the kind of risk you represent.
The greater the underlying liability coverage, the less expensive
the policy will be since you would be less likely to need the additional
If someone alleges you were negligent for an incident
that causes injury, legal fees may be extremely high even if the
verdict is in your favor. This policy provides coverage for legal
defense costs for a covered loss.
You May Need a Personal Umbrella Liability
- You have total assets greater than underlying liability
- You are financially responsible for the actions
of a young, inexperienced driver
- You perform extensive volunteer work for nonprofit
- You frequently host guests on your property
- Your residence includes a swimming pool
- You own a watercraft
What is Self-Insured Retention?
If an umbrella policy provides coverage for circumstances that are
excluded by an underlying policy (such as Personal Injury under
a homeowners policy), the insured pays a selected retention
limit, typically between $250 and $10,000 which acts like
a deductible, and the insurance company pays the loss over that
- Your Personal Umbrella Liability Policy
provides Personal Injury and Property Damage protection:
- Against libel, slander and defamation of character
- Against mental anguish or mental injury
- And while serving on a board, or as an officer
of a religious charitable o nonprofit organization as long
as it does not involve your business or profession
Since your other insurance policies would pay first,
Personal Umbrella Liability insurance is relatively inexpensive
in view of the degree to which it protects your lifestyle. The premium
is based on the limits selected, your number of autos, residences,
boats, etc. and the area where you live.
Should I purchase an umbrella liability
If you are ever sued, your standard homeowners
or auto policy will provide you with some liability
coverage, paying for judgments against you and your
attorney's fees, up to a limit set in the policy. However,
in our litigious society, you may want to have an extra
layer of liability protection. That's what a personal
umbrella liability policy provides.
An umbrella policy kicks in when you reach
the limit on the underlying liability coverage in a
homeowners, renters, condo or auto policy. It will also
cover you for things such as libel and slander.
Since the personal umbrella policy
goes into effect after the underlying coverage is exhausted,
there are certain limits that usually must be met in
order to purchase this coverage. Most insurers will
want you to have about $250,000 of liability insurance
on your auto policy and $300,000 of liability insurance
on your homeowners policy before selling you an umbrella
liability policy for $1 million of additional coverage.
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5005 200th ST SW, Suite 200 B, Lynnwood, WA 98036
Phone: (425) 673-7948 Fax: (425) 673-7942
IMPORTANT NOTE: This Web site provides only a simplified description
of coverages and is not a statement of contract. Coverage may not
apply in all states. For complete details of coverages, conditions,
limits and losses not covered, be sure to read the policy, including
all endorsements, or prospectus, if applicable. Please feel free to
contact us for further information.