What is a Personal Umbrella Policy?
Primary insurance policies, such as homeowners and auto policies, often offer many protections and several available limits. There’s normally a limit to how much protection one primary insurance policy can provide, though. When Vermont residents want protection beyond what a primary policy’s able to afford, a personal umbrella policy is one option that’s available.
A personal umbrella policy typically functions as a secondary liability insurance policy that supplements the protections provided by one or more primary policies. When an underlying policy’s coverage is exhausted, a supplemental umbrella policy may cover remaining costs associated with a covered liability claim.
Who in Vermont May Want Personal Umbrella Insurance?
Any Vermont residents who want more liability coverage than their primary policies afford might be interested in personal umbrella insurance. Often, such people either have assets they want to protect or have above-average risk exposures. Some examples of residents who might be interested in this supplemental coverage include:
Parents and grandparents who own family estates they eventually want to pass on
Wealthy individuals who fear they may become targets of opportunistic lawyers
Landlords who want extra protection against lawsuits that tenants may file
Athletes who partake in high-risk sports (e.g. contact sports, boating, etc.)
Professionals who offer pro-bono services that professional liability insurance doesn’t cover