An umbrella policy provides worldwide liability coverage over and above that offered by underlying policies. For most personal lines clients, these underlying policies will be auto and homeowners. The liability coverage may be excess, or it may be “drop down.”
However, an umbrella can provide more coverage than an excess form. For example, if an insured auto policy limits of 250,000/500,000 bodily injury and $250,000 property damage, when added to a $1 million umbrella the insured now has limits of 1,250,000/$1,500,000/1,250,000. If the insured has $100,000 personal liability coverage on his or her homeowners, then, with the umbrella, there is a total of $1,100,000 in coverage. For covered occurrences not afforded coverage by the underlying policies (homeowners policies commonly do not provide personal injury coverage unless it is added by endorsement; umbrella policies include this coverage as a matter of course) the umbrella offers $1 million or whatever limit is selected, subject to the retained limit.
Songer Insurance Agency has several different umbrella policies designed for anyone trying to protect personal assets, a business or both. Umbrellas usually are very inexpensive and higher recommended for anyone with assets or a company that needs an umbrella policy. For more information on umbrella policies see us at 2955 Robert C. Byrd Dr. Beckley West Virginia. Alternatively, call us at 304-252-6568