Personal Umbrella Insurance
Personal umbrella insurance – sometimes called personal liability insurance, covers you and members of your household against lawsuits involving personal injury to others, damage to other people’s property and a variety of claims such as defamation, landlord liability and false imprisonment, depending on your policy.
Personal Umbrella Insurance
Personal umbrella insurance – sometimes called personal liability insurance, covers you and members of your household against lawsuits involving personal injury to others, damage to other people’s property and a variety of claims such as defamation, landlord liability and false imprisonment, depending on your policy.
In addition to paying out any damages up to your liability limit, your umbrella insurance will typically also cover associated legal costs over and above that amount. For example, if you have an umbrella policy with $1 million of liability coverage, and you were sued for that full amount, your insurer would pay out the $1 million plus provide your legal defense or cover your fees. A “retained limit” — which is similar to a deductible in that you’re responsible for paying it before your coverage begins to pay out — might apply.
Details and exclusions can vary significantly between umbrella policies, but here are a few sample scenarios that would generally be covered:
- Your teenage son gets into a car accident, and the cost of injuries to other drivers is above your auto insurance liability limit.
- A houseguest falls down your stairs and sues you for her medical bills plus pain and suffering, exceeding your homeowner’s insurance liability limit.
- A restaurant sues you for writing a negative review online.
