Umbrella Insurance (also known as Excess Personal Liability, “Sleep Tight” Insurance, is a form of liability insurance protecting you above your primary home liability, personal automobile liability, and recreational liability when those limits are not enough to cover the damages of an accident you cause or an incident on your property.
An Umbrella Insurance policy kicks in right where your other liability underlying limits die out. It also may provide coverage for some sources of loss that are not covered by your primary policies.
Why do you need Umbrella Insurance/Excess Liability Coverage?
Umbrella Insurance is a crucial fail-safe policy to make sure you are protected in the event your primary policies are stretched to their limits. Additionally, umbrella insurance is a great safeguard in the event you get sued. Not only can having an umbrella policy help you in covering damages at the time of the incident, but can prevent the need to incur debt that could follow you around for years to come.
- People make the mistake of thinking that because it is called “excess liability” that it is unnecessary. The truth is that if you have assets at risk (think your kids’ college fund, your retirement savings, your home, your business, your future income) – you need the protection.
- Umbrella insurance policies are great as a hedge for an aggressive defense. If your insurance company is defending you for a wrongful injury claim, would you want them defending just the underlying $300 or $500,000 limits or those limits plus a $1 or $2 million dollar excess liability policy?
- In today’s society, lawsuits are occurring with alarming frequency. Moreover, the monetary awards can be staggering.
To learn more about umbrella insurance/excess liability coverage, to see if you qualify, or to discuss what coverage is best for your and your family, give us a call today.