What is Personal Umbrella Insurance?
Personal Umbrella Insurance is the insurance that is purchased by an individual to obtain a higher level of liability coverage than the coverage provided under a basic automobile, homeowners, or renter’s policy. Essentially, a Personal Umbrella policy extends the liability protection beyond the limits of the underlying policies. Coverage levels can be purchased in million dollar increments, typically up to $10,000,000.
What does Personal Umbrella Insurance cover?
Florida Personal Umbrella provides enhanced levels of liability protection to the owner of a home, tenant of an apartment, or owner of a vehicle, in the event of a liability claim. In the event that the settlement or associated legal fees extend beyond the coverage limit of the automobile or home policy, the Personal Umbrella policy will provide additional coverage up to the limit of the policy.
What are additional coverage options?
The Florida Personal Umbrella Insurance policy can also include additional coverages. These coverage enhancements typically only add a small amount to the total premium of policy. The following are some of the more important areas of optional coverage that can be added to policy:
- Worldwide Coverage – Allows for coverage to be effective worldwide and not limited to the state of purchase.
- Libel Coverage – Provides coverage for slander, libel, and false arrest.
Who should purchase Personal Umbrella Insurance?
Florida Personal Umbrella Insurance, while not mandatory, provides very significant protection to most consumers. As the rate of liability law suits, the associated legal fees, and settlements continue to escalate, the basic liability coverage provided with standard policies are becoming increasingly inadequate. This new reality deems the protection provided by the Personal Umbrella insurance policy more important than ever.
What discounts are available for Personal Umbrella Insurance?
There are a number of discounts that are typically available for Personal Umbrella Insurance. Some of these discounts are:
- Age Discount – If you are 50 or older, you may be eligible for this discount
- Claim Free – If you have avoided any liability claims in the last 5 years.
- Safe Driver – If you and the members of your household have clean driving records, this discount may be an option.
- Multi Policy – Bundling the Personal Umbrella Insurance with your automobile policy will typically result in a discounted premium.