In addition to reviewing and updating your insurance program regularly, you can avoid possible gaps in coverage by purchasing a personal umbrella policy. Once used only by high net worth individuals, personal umbrellas have become a viable option for anyone who may need extra liability protection.

In today’s world, liability protection is important. A personal umbrella expands the liability coverage you may already have through your homeowners and/or automobile insurance policies, in addition to protecting you in some unforeseen circumstances.

Umbrella Provisions

Most umbrella policies provide at least $1,000,000 in excess liability protection. An umbrella can also cover many situations that aren’t covered under your current policies. The following are some benefits of a personal umbrella policy:

• It can provide payment for legal defense expenses when primary insurance coverage does not apply.
• It can protect you from risk while you’re traveling outside the country. Umbrella protection is usually applicable worldwide.
• It can cover a watercraft that is used rarely (not more than 30 days per year) or is in storage, as well as non-owned recreational vehicles.

Umbrella Exclusions

However, there are some situations that may not be covered under the umbrella policy. For instance, umbrellas usually do not apply to uninsured motorists, business property, or professional activities.

You may have to meet certain eligibility requirements to qualify for an umbrella. For instance, you might need to purchase higher liability limits on your current auto and homeowners policies in order to satisfy the umbrella’s underlying requirements. If you have young drivers listed on your policy, have numerous traffic violations, or own a vacation home or boat, you may find it more difficult to obtain a personal umbrella policy.

However, learning more about a personal umbrella policy may be worth your while. Should you ever be involved in a lawsuit, any gaps in your current liability coverage could end up costing you. For more information on this valuable protection plan, contact one of our qualified insurance professionals.