New Jersey, NJ Personal Umbrella, Excess Liability Coverage
A personal excess policy (aka personal umbrella) is liability coverage that provides an extra measure of security beyond the normal liability limits on your personal auto insurance, homeowner’s, boat, motorcycle, or dwelling policy.
Most personal automobile and homeowners provide $500,000. liability coverage. If you want higher limits of coverage, simply purchase a personal excess policy in the amount from 1 million to 10 million.
The average cost is from $160. to $200. dollars for the first million of coverage and about $100. for each million thereafter.
Umbrellas provide additional coverage if you’re sued for damages suffered by someone as a result of an accident – involving your car, property, or while participating in recreational activities such as boating or golfing. Umbrella policies are a wise choice if you are exposed to risk of an incident that can result in a lawsuit from:
- Owning a swimming pool.
- Having a young driver in your family.
- Engaging in sporting activities like snow skiing, golf or baseball
- Operating personal watercraft or other high-risk recreational vehicles
The Personal Umbrella Policy was designed to provide coverage in the event of a catastrophic claim, lawsuit, or judgment. Personal umbrella policies provide excess liability insurance over the insured’s basic primary policies, such as the homeowners, personal auto and boaters policies. Coverage is provided on a worldwide basis for the entire family. Umbrella policies pay only after the limits of the underlying primary policies are exhausted. Coverage is usually broader and applies to some loss exposures not covered by the primary policies. A typical umbrella policy will provide coverage on a single limit occurrence basis.
Coverage provides for bodily injury and property damage liability. Defense costs are also covered, normally in addition to the liability limit, and sometimes written as a part of the total limit. A self-insured retention must be met when certain losses are covered under the umbrella policy but not covered under the primary policy. The insurer requires the insured to carry certain minimum amounts of liability on primary policies. Coverage under a personal umbrella policy can vary depending on the insurer since there is not a standard form.