Do you need a Personal Umbrella Policy?

Posted by on Mar 24, 2011 in Insurance, Personal Insurance, Umbrella Policy

A personal umbrella policy is an insurance policy that provides additional protection to insurance holders and their families on an excess basis over different basic personal insurance policies like auto insurance policy, home insurance policy and boater’s policy. Since the umbrella policy provides excess liability insurance over the insured person’s primary policies, it is also known as excess liability insurance.
Personal umbrella insurance coverage is usually large and is applicable worldwide. It applies to losses that have not been covered by primary personal insurance policies. In other words, the compensation comes only after the limits of the underlying basic policies have been fully exhausted. A standard umbrella policy usually provides coverage on a single limit occurrence basis.

Befitting its name, personal umbrella policy only pays compensation for claims, lawsuits and judgments that are related to one’s personal life and affairs. Business or professional claims are not considered under the personal umbrella policy. Of course, special coverages have been arranged for some business affairs / dealings like ownership of office buildings, retail and rental residences.

What Liability Coverages Are Assured By The Personal Umbrella Policy?The liability coverages included as part of personal umbrella policies are the use and ownership of real estate nd automobiles, even boats and jet-skis. Travel activities and other civic-affair going-ons such as libel and slander allegations are also considered under the personal umbrella policy.
At times, the personal umbrella policy provides coverage for “personal injury”. Here, personal injury does not stand for any bodily injury or property damage of the insurance holder; it rather provides protection against the infringement of one’s rights, livelihood and renown. Defamation cases, false arrests/imprisonments, invasion of privacy, malicious prosecution and similar happenings are categorized as personal injury.

The personal umbrella policy pledges you financial protection against claims and lawsuits wherein you are sued for being the cause of (even though unintentionally) someone else’s physical or mental suffering (including bodily injury and damage of property).

No liability coverage is provided for damages from asbestos/lead exposures, pollution or for the transmission of communicable diseases. You will neither enjoy any protection against any kind of discrimination or against warfare. Damages for sexual abuse or for workers’ exploitation are not entertained under the umbrella policy. Other exclusions include coverage for intentional/illegal acts as well as claims for accidents/incidents taking place before the policy becomes valid.

For liability coverage/protection in any one of the above cases, you will need to make special request through your application. Your representative will take care of the rest, arranging a policy (with adequate coverage) if at all possible.


Call your agent at DOWNEY INSURANCE GROUP for more information.

Our clients are our families, Our friends and our Neighbors and it’s our obligation and commitment to all of you to protect what you have worked hard to build.

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