Umbrellas are designed to be carried over a person’s primary liability coverage. A person’s primary coverage is typically part of his or her personal automobile and homeowner’s coverage. Primary refers to the fact that in the event of a loss, the liability portion of your auto or homeowner coverage is the first to respond. Umbrellas or excess liability policies respond to an eligible loss only after the primary insurance has paid its limit.
It’s quite possible that your primary insurance limits provide more coverage than you’ll ever need. However, circumstances could involve a type of loss that is not completely covered by a primary policy. For instance, your newly licensed child is driving the family car and slides on an icy highway. He or she ends up causing a chain collision damaging several cars and injuring a dozen drivers and their passengers. Or maybe you often volunteer to help transport members of your son’s first grade class on field trips and you have an accident because you tried to beat a yellow light. If you don’t have enough primary coverage, any shortage may have to come out of your personal assets.
Umbrellas generally provide additional liability coverage for the following underlying policies:
- Personal automobile
- Homeowners / Renters
- Recreational Vehicles
- Watercraft
- Personal liability
Find out what you have to lose with our Liability Risk Assessment