What is a Personal Umbrella Policy?
A Personal Liability Umbrella Policy provides additional layers of liability coverage over the primary liability of your underlying policies. Umbrella coverage amounts typcially begin at one million dollars and can be increased in increments of one million.
As an example: Let's say your car is insured for liability with limits of $250,000 per person. You, or one of your household members, causes an accident resulting in a very serious injury to the other driver. The person injured sues you and has a valid claim for $750,000 for the injuries, impairments, and loss wages. Your auto policy will pay the first $250,000 and the umbrella would kick in for the remaining $500,000.
Why have an Umbrella Policy?
The value of a personal umbrella policy is to provide higher amounts of liability coverage for an affordable premium. This policy can help protect the financial assets of your household when you need it most and can bring confidence knowing that you have the coverage needed to protect you and your family.
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Comments
While I was talking to my agent about changes in my umbrella
While I was talking to my agent about changes in my umbrella coverage the topic of my college student came up.
She is at UT and does not have a car, but she does have a license. Since she is not driving, I took her off my policy. Now, a year later, the company wants me to put her name back on the policy because she is under 24, sign a statement saying she will NOT drive my cars AND wants to increase my premiums about $200. This increase will NOT insure her as I still have to sign the statement.
The whole things sounds strange to me and I want to know what my options are as the current plan from the home office is to: 1. put her name on the policy, 2. incease my premium and then, 3. sign a binding statement telling them what they already knew, she is a college student living more than 100 from home and will NOT drive the car.
What's this all about please?
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