Umbrella Insurance Coverages
How a personal umbrella policy can protect you and your assets.
Personal umbrella protection provides liability coverage above your auto and homeowners insurance and adds additional coverages1
. Coverage for any claim will be determined by the particular circumstances of the claim and the provisions, exclusions, conditions and limits of your policy.
Here's an example of how Umbrella coverage works:
You own a Liberty Mutual Auto policy with $250,000 per person liability coverage and total of $500,000 per accident.
You also own a personal liability Umbrella policy with $1M coverage.
Let's say you or an insured driver on your policy is found liable for an auto accident with serious injury and is liable for $800,000 (one person injured).
Your auto insurance policy would cover the first $250,000
Your Umbrella policy pays the rest of $800,000-$250,000 = $550,000
Total coverage available is the auto policy coverage ($250,000) plus Umbrella ($1M) or a total of $1.25M.
Now, let's say you faced the liability above without the Umbrella coverage, but with home equity and savings above and beyond your auto liability coverage. A court could order you to personally pay the uninsured amount.2
What does Liberty Mutual Liability Insurance Cover?
- Additional liability coverage over the limits of the auto, home, watercraft or recreational vehicle policy
- Coverage for all family members living in your household
- Worldwide coverage
- Coverage on rental properties you own
- Personal injury coverage if policy holder is sued for:
- Libel or slander
- False arrest
- Malicious prosecution
- Violation of right of privacy
- Wrongful eviction or wrongful entry
- Payment of defense costs, attorney fees and other expenses associated with a lawsuit, even if the lawsuit is frivolous or groundless (defense cost coverage is in addition to policy limits)
Like most insurance policies, a personal umbrella policy has certain exclusions, which include but are not limited to:
- Malpractice Lawsuits
- Workers Compensation
- Business pursuits
- Damage intentionally caused by any insured