Personal Umbrella policies are used to provide additional coverage when an insureds underlying primary policy is fully exhausted. This policy may offer coverage for claims that are otherwise excluded by the insureds other liability policies.
So who needs a Personal Umbrella policy?
An easy way to determine the answer is to find out if the insureds net worth is in excess of what will be covered by their underlying homeowners or auto policy should they incur a claim. Popular types of claims include bodily injury, property damage and slander or libel. Personal Umbrella does not cover physical property damage to the insureds own vehicle or home.
Insureds should also take into consideration non-monetary assets such as property, land and vehicles. An additional consideration should be made to future income as well. If the insured believes that they will be reaching the New York Times Bestseller list in a few months, they may consider covering their future assets from possible claims once they become a public figure.
It is a misconception that Personal Umbrella policies are tailored for the wealthy. A simple homeowners claim that is $200,000 above their homeowners limit of liability could bankrupt a working class family. Highlighting these risks, and the low cost of purchase, may result in considerable peace of mind for your clients.
Some claim examples to consider:
- A neighbor decides to take a spin on your insureds ATV. They hit a tree root and flip the recreational vehicle resulting in extensive surgery and high medical bills.
- Your insured throws a Super Bowl party. A family member drives home intoxicated and causes an unfortunate accident. Some states may hold your insured liable.
- A tree falls in the woods, but it's behind your insureds house, everyone heard it and it hit their neighbors new truck.
- Your insured was falsely arrested and the arrest made the news. Their reputation was hurt in the process causing them loss of business revenue or clients.
We hope this information will help you drive more Personal Umbrella business and further educate your clients. For additional questions about the right coverage for your personal lines risks, contact New England Excess Exchange at info@neee.com or call 1-800-548-4301.
