Umbrella insurance

Homeowners, auto, and watercraft policies have a limit on liability insurance. If an unfortunate accident should happen that is your fault, do you have enough liability insurance from your current policies to cover your costs for negligence? Since no one can predict how much a judge may award the injured person, umbrella insurance is not just for the wealthy anymore, but a needed protection for every policyholder.

Personal umbrella insurance is low-cost liability coverage that provides an extra measure of security beyond the limits of the liability insurance on your auto and homeowners policies. Personal umbrella insurance provides additional limits of coverage if you're sued for damages suffered by someone as a result of an accident - involving your car, property, or while participating in recreational activities such as boating or golfing. You are especially exposed to the risk of an incident resulting in a lawsuit if you:

• Have a swimming pool, hot tub or trampoline
• Have a young driver in your family
• Engage in sporting activities like snow skiing, golf or baseball
• Operate personal watercraft or other high-risk recreational vehicles
• Own rental property
• Own a horse

Umbrella policies kick in after the liability insurance in your homeowners and auto policy runs out. For example, if you have a home insurance policy with liability coverage of $300,000, the umbrella policy will pay claims above that amount up to the limit selected.

More than your average liability coverage

When you buy a personal liability umbrella, you're getting more than just higher liability limits. You're also buying broader coverage in case you're sued. The insurer selling the umbrella policy agrees to cover you if you cause bodily injury, property damage, or personal injury.

The personal injury protection offers coverage not found in your auto and homeowners policy without an extra endorsement. Generally, personal injury encompasses false arrest, false imprisonment, malicious prosecution, defamation, invasion of privacy, wrongful entry, or eviction. Most primary policies cover bodily injury and property damage, but not personal injury. Certain umbrella policies also provide coverage if you face liability arising from your service on the board of a civic, charitable, or religious organization.

Protection against claims and lawsuits does more than simply pay for the damages. Even if a lawsuit is frivolous, you still face the expense of defending yourself. Your liability coverage pays for lawyer fees and defense costs, which can quickly add up.