Excess Liability & Umbrella Insurance

Do you know what happens when the liability limits on your home or auto policy run out? The more assets you have the more risk you have. Once the liability limits run out on other underlying insurance, an umbrella or excess liability policy will take over and provide another layer of insurance protection for you and your family. It’s more common than you think…..

Imagine one day, you get into a car crash. Fortunately, you’re not badly hurt, and the damage to your car is well within the limits of your auto insurance coverage. Unfortunately, the other car involved in the crash is full of executives from a large company – and their injuries, and the damage to the car, are much more serious.

A court rules that you are responsible for the accident and must pay for the damage to the other car, the executives’ medical bills, and their lost wages for the time they were unable to work after the accident. Altogether, you owe about a million dollars in damages. Your auto insurance policy only covers the first $250,000 of that, so you’re on the hook for the remaining $750,000.

This kind of insurance takes over when your other policies run up against their coverage limits. In this case, an umbrella policy would cover the extra $750,000 in damages and even pay your legal bills – saving you from having your assets wiped out and your retirement snatched away by a single unfortunate accident.

Types of damage covered by an umbrella policy include the following:

• Bodily Injury. If you injure someone in a car accident and the medical bills exceed the limits of your auto insurance, an umbrella policy picks up the tab. Similarly, if the electrician slips and falls down the stairs while leaving your house, the umbrella policy covers any medical bills beyond the limits of your homeowners policy. You’re also covered for types of injuries that other insurance doesn’t cover. For instance, if your dog bites someone while you’re out on a walk, homeowners insurance doesn’t cover the damage, but umbrella insurance does.
• Property Damage. If your teenager crashes the family car through a fence and into the side of your neighbor’s house, an umbrella insurance policy can pay for any damage beyond the limits of your auto insurance. The policy also covers damage that isn’t included in auto and homeowners policies. If your pet claws up a priceless painting in a neighbor’s house, or your child knocks over an antique crystal vase, or you rent a boat during a vacation and accidentally crash it into a pier, an umbrella policy can take care of the damage.
• Other Kinds of Legal Damages. An umbrella insurance policy protects you if you’re sued for libel or slander – written or spoken words that cause injury to someone else. It can also protect you against suits for false arrest, malicious prosecution, violation of privacy, and a variety of other civil charges.
• Legal Fees.A final perk of umbrella insurance is that it takes care of your legal fees and court costs in a lawsuit. Lawyers are expensive, and the cost of a major lawsuit could force you into settling out of court, even if you know you’re not really at fault. With an umbrella policy, you know you can afford a good lawyer to protect your assets.

We offer a wide range of products from many insurance companies and will help you secure the appropriate size umbrella or excess policy to protect your assets.

Let’s talk about Umbrella/Excess Coverage or review your existing policy today!

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