Umbrella insurance is a supplemental liability policy that provides extra coverage beyond the limits of standard home, auto, or boat insurance policies. It helps protect against large lawsuits and claims that exceed primary policy limits.
Pursuant to your particular policy language, coverage provisions, and exclusions; umbrella policies can include coverage for:
Excess Liability Coverage – Extends coverage beyond the limits of existing home, auto, or boat insurance policies. Kicks in when the liability limits of primary policies are exceeded. Subject to mandatory underlying limits.
Bodily Injury Liability – Covers medical expenses, lost wages, and legal fees if you or a covered household member cause injury to someone else.
Property Damage Liability – Covers damage to someone else’s property caused by you or a household member.
Legal Defense Costs – Pays for attorney fees, court costs, and settlements if you’re sued—even for frivolous lawsuits. Coverage applies even if you’re not found at fault.
Personal Injury Coverage – Covers lawsuits related to libel, slander, defamation, false arrest, or invasion of privacy.
David has the following insurance policies:
One evening, David is driving in heavy rain when he accidentally runs a red light and collides with an SUV carrying four passengers. The accident results in severe injuries to the other driver and three passengers, leading to extensive medical bills and a lawsuit.
How Umbrella Insurance Helps:
Auto Insurance Pays First:
Umbrella Insurance Covers the Rest:
Without umbrella insurance, David would have been personally responsible for $720,000 out-of-pocket. Because of his umbrella policy, his assets are protected, and the full amount is covered.
Contact CastleWise to discuss Umbrella insurance coverage.
