Excess Liability insurance provides additional layers of protection above the underlying limits of coverage. Once the primary limits of liability insurance on your home, auto or other policies (that include liability coverage) are exhausted, your excess liability policy insurance will then provide additional protection.
Do you have enough liability insurance?
Imagine what would happen if your dog was to bite a neighbor’s child, or if there was an accident on your rental property. What would happen if a fire in your condo spread to other units? If such events happened to you, there’s a good chance your current liability limits wouldn’t be adequate.
Liability insurance starts when the others stop?
Once the liability limits are exhausted on your home, auto, or other policy, your umbrella/excess policy takes over and provides an additional layer of protection generally starting at $1,000,000. Higher limits may be available.
The coverage is broad
An umbrella insurance policy also pays some claims not covered by your home, auto, or other underlying insurance. The policy covers not just you, but your spouse and family members living in your household. Defense costs are generally paid outside the limit of insurance.
What is an excess liability policy?
The excess/umbrella liability policy is designed to increase your liability protection. This single policy acts as an “umbrella” over all of your other personal liability policies – home, car, boat, RV, etc., so you have a higher personal liability limit, than what would otherwise be available. In certain circumstances, excess/umbrella insurance may provide personal liability coverage that is otherwise excluded from your other policies.
How do I know if I need an excess liability policy?
It used to be that the only people who needed excess/umbrella liability policies were individuals with sizable personal assets who would be at risk to be sued. However, in our litigious society, everyone — regardless of income level and assets — can be subject to large lawsuits.