Courtesy of iii.org
If you are sued, your standard homeowner or auto insurance provides some liability coverage to pay your judgment and attorney’s fees up to the limit set in your policy. But in our litigation society, you may want an extra layer of liability protection. That’s what the Personal Umbrella Responsibility Policy provides.
Umbrella insurance starts when you reach your homeowner’s, tenant’s, condo or auto insurance’s basic liability coverage limit. We’ll also cover things like defamation and slander.
For around $150 to $300 per year, you can get a million dollar personal umbrella liability insurance. The next $1 million costs about $75, and after that $50 per million dollars.
Because the Personal Umbrella Policy goes into effect after the primary coverage is exhausted, there are usually certain limits that must be met in order to purchase this coverage. Most insurers will want you to purchase about $250,000 liability insurance for auto insurance and $300,000 liability insurance for homeowners insurance before selling umbrella liability insurance for an additional $1 million in coverage.