Umbrella and Excess Liability Insurance

What is umbrella and excess liability insurance?

Excess liability insurance provides coverage above the limits of the underlying coverage. Umbrella liability is a type of excess insurance. An umbrella policy can be applied to multiple policies and can cover claims not included in the underlying policies.

Who needs umbrella and excess liability insurance?

Those who have accumulated wealth or own property can benefit from this type of coverage. The more you own, the more you have at risk.

This type of coverage is commonly purchased by people who:

• Own property in high foot traffic areas
• Who want a higher liability limit
• Have significant savings or other assets
• Are concerned about liability claims against them when they travel internationally
• Own things that can cause injury lawsuits such as pools, trampolines and dogs
• Engage in activities that increase your chances of being sued, such as being a landlord, participating in sports where you might injure others, or volunteering

How much does umbrella insurance and excess liability cost?

Some factors that might affect your umbrella insurance and excess liability costs include:

• Your net worth: Basic policies begin at $1 million. Usually, your policy should be equal to or greater than your net worth.
• Your location: Insurance rates will vary considerably by state.
• Your credit history: If your credit history isn’t the best, your umbrella insurance cost may not be as low as you’d like.
• Your driving records: Your speeding tickets and accidents may impact your umbrella insurance costs.
• Your risk profile: Discuss what kind of things put you at risk with your representative like owning high-powered vehicles.