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.
How Much Coverage Do Personal Umbrella Policies Provide?
Like most other types of insurance policies, how much coverage personal umbrella policies provide varies. It’s not uncommon, however, for them to provide millions of dollars worth of protection. Insurance carriers are often able to keep premiums low and still provide high limits because personal umbrella policies are a secondary form of insurance.