Take a fresh look at your lifestyle.

Protect your assets by using a personal liability insurance policy.


By Nancy Kamachi,?Leavitt Group

A personal insurance policy, often known as an umbrella policy, provides liability insurance for claims that exceed the limits to your underlying homeowners, auto, as well as other personal insurance coverages.? Umbrella policies can be bought with limits in one-million dollar increments with typical total limits from $1 million to $5 million.

An Umbrella Policy:

  • Extends the liability insurance you might have on other existing personal insurance policies, including homeowners, automobile, camper, motorhomes, watercraft, and rental properties.? It gives protection for claims the spot where you are held liable.
  • Takes effect once the limits for your underlying policies have been exhausted.? For example, in case your automobile liability limit is $300,000 and you also cause a crash with $500,000 in injuries, your car or truck policy would pay $300,000 toward the claim and also the umbrella policy would spend the money for remaining $200,000 to the claim.
  • Provides coverage for legal defense of claims that are not typically integrated in basic insurance on the homeowners policy, including such things as slander, false arrest, false imprisonment, defamation of character, mental anguish, and wrongful eviction.
  • Applies to claims where you are held answerable for the big event and will cover you if ever the claim occurred either because of negligence or non-negligence on your behalf.? Homeowners and auto policies will protect you in the event the claim occurred as a consequence of negligence from you.
  • Provides worldwide coverage.? In case you are inside an automobile accident in a foreign country, your umbrella policy will give you coverage for anybody who is found liable for the accident.? Typically your basic motor insurance policy is not going to offer worldwide coverage.
  • Requires that there is a certain a higher level liability insurance on the underlying policies (this varies by insurance company

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