Umbrella Coverage Information
As part of your home and automobile insurance, you purchased liability insurance. Liability insurance will cover you against bodily injury or property damage that you cause to another. In today's highly litigious society, the amount of liability insurance you purchased under your home or automobile insurance policies may not be enough to cover you in a lawsuit.
Many insurance purchasers are covering themselves with another layer of liability coverage called a "personal umbrella" or "excess" coverage. Umbrella liability limits start at one million dollars and can be purchased for as high as one hundred million dollars.
In a legal demand or lawsuit situation for an accident or incident you caused, once the underlying coverage you initially purchased in your home or automobile insurance runs out, the umbrella will trigger and will cover you to the limit you chose.