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Often called an "umbrella" because it is carried over all other
liability insurance and is used for a catastrophic loss when primary liability
insurance is exhausted. This policy adds $1,000,000 ($2,000,000 to $10,000,000
available) extra coverage to your personal liability and automobile liability
policies. Coverage is provided for you, your spouse and any relatives living in
your household and insured by your primary policies. This
policy is designed to cover catastrophic situations where a legal award could
exceed the limits of your primary liability insurance. This policy also includes
coverage if you are sued for false imprisonment, wrongful eviction, libel, slander,
defamation of character or invasion of privacy. There
are many factors to consider when calculating a premium: the state in which you
live, the number of liability exposure you have (cars, drivers, boats) etc. Usually
the best rates occur when the customer insures both auto and home with the same
company as the umbrella. This is a requirement for many insurers offering umbrella
coverage. |
