In addition to reviewing and updating your insurance program regularly, you can avoid possible gaps by purchasing a personal umbrella policy. Once a policy used only by the wealthy, personal umbrellas are now becoming a solution for anyone who needs extra liability coverage. This need is quite common, since we are living in the age of the million-dollar lawsuit. A personal umbrella broadens the liability coverage that you already have through your homeowners and auto insurance policies, as well as protects you in some odd, unforeseen circumstances.

Umbrella Provisions

Most umbrella policies provide at least one million dollars in excess liability protection. An umbrella can also cover many situations that your current policies may not. The following are other benefits of a personal umbrella:

• It can provide payment for legal defense costs when primary insurance does not apply.

• It can protect you from foreign risk exposures while traveling because umbrella protection is usually applicable worldwide.

• It can cover watercraft not used more than 30 days per year, watercraft in storage, and non-owned recreational vehicles.

Umbrella Exclusions

Keep in mind that there are situations the umbrella does not cover. For instance, umbrellas usually do not apply to uninsured motorists, or to business and professional activities and property.

Also, you may have to meet certain requirements to qualify for an umbrella. For example, you might need to purchase higher liability limits on your current auto and homeowners policies. If you have youthful drivers on your insurance policy, numerous traffic violations, drunk-driving convictions, vacation homes, or a boat, it may be more difficult for you to obtain a personal umbrella policy.

But it is still worth the effort. Should you find yourself facing a lawsuit, any gaps in your current coverage could end up costing you your life savings. A personal umbrella can help you avoid these gaps in your insurance protection. For more information on this valuable coverage, please call us or contact us using our contact form.