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What is Personal Umbrella Liability Insurance?

iStock_000006239459XSmallIf you’ve heard of personal umbrella liability insurance, it isn’t what the name implies. It certainly sounds like a silly form of insurance which protects you from liabilities if you ever feel tempted to whack someone with your raingear. While it does protect you from personal liability, like any form of liability insurance, the “umbrella” portion refers to something else entirely.

Basically, what “umbrella” means is that this insurance serves as an extension of your existing home or auto insurance policy. While those policies protect you from liability in the case of an accident on your property or in your vehicle, an umbrella policy extends liability protection to other types of scenarios which would not normally be covered by another insurance policy.

An umbrella policy is not dependent upon location, so an incident would not have to occur in your home or car – or caused by your car – in order to be covered by your liability insurance. You would be covered anywhere in the world. Also, while most liability insurance policies mostly concern personal injuries to others, an umbrella liability policy would protect you in other situations. For example, if you are ever sued for libel, slander, or defamation of character, your umbrella liability policy would include coverage for those events.

In the event of a liability lawsuit, your primary policies may cover only damages but not defense costs or attorney fees. An umbrella liability policy would extend coverage to include these expenses, which can be prohibitive for many people.

In this age of frivolous lawsuits and future income against accidents, keeping your family’s future secure in any situation.