How Personal Umbrella Works

Personal umbrella insurance is extra insurance coverage that protects you from major claims and lawsuits. Your auto insurance and homeowners insurance have coverage limits. A major claim could be greater than either one of those coverage limits. Personal umbrella extends those coverage limits and also provides additional protection so that won't be left in financial ruin.

​A personal umbrella policy protects you in two ways:

1. Provides additional liability designed to kick in when the liability on primary policies (auto and home) have been exhausted.
2. Provides coverage for claims excluded by other liability policies such as libel, slander, or false arrest.

Here are several examples how a personal umbrella insurance policy could be used if your auto or homeowners insurance wasn't enough, or if the incident is not covered elsewhere:

• Suppose you have a limit of liability of $300,000 on your auto insurance policy. Umbrella insurance might add another $1 million to that limit. You have serious accident and you are facing a liability and claim of $800,000. Your auto policy would pay the first $300,000. The personal umbrella policy then kicks in to pay the balance of $500,000.
• You are hosting a party at your house when a neighbor's child accidentally falls and trips in your yard. The fall results in an ambulance ride. The parents could sue you for any pain and suffering.
• Your dog runs out of the house and attacks a neighbor who was going for a walk. Your neighbor sues you to cover her medical bills, lost wages, and pain and suffering.
• Your daughter gets into a fight at school and punches another girl, breaking her nose. The girl's parents sue you.
• Your son hates math class as well as the teacher. He makes several disparaging and false remarks about his teacher online. The teacher sues you for personal injury and is awarded $500,000 in damages. 

Pepe Insurance Agency is your trusted local insurance agent located at Poughquag, NY in Dutchess County. We do our best to make sure that our clients are well-protected with affordable umbrella insurance. We make sure to go the extra mile to help you with your needs. To learn more about umbrella insurance and to obtain a free quote, click on the button below.

Umbrella Insurance