Homeowners, auto and other primary insurance policies provide a lot of protection, but sometimes even all of the coverage they offer isn’t quite enough. For Massachusetts residents who want more protection than their primary policies alone afford, a personal umbrella policy may be suitable.
A personal umbrella policy usually serves as a secondary insurance policy that offers supplemental liability protection. It may be used to fill in gaps left by primary policies and/or to extend protection beyond the limits of primary policies.
Who in Massachusetts Needs Personal Umbrella Insurance?
Anyone who wants extra liability protection may be interested in personal umbrella insurance. Some Massachusetts residents who may want a policy are:
Wealthy individuals who may be targets of opportunistic lawsuits
Property owners who may be sued if someone is injured on their property
Owners of family estates who want to shield the estate from potential liability suits
Boaters who want extra protection for potential on-water accidents
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What Types of Incidents Do Personal Umbrella Policies Cover?
Depending on specific terms, conditions and exclusions, personal umbrella policies can cover a wide range of liability risks. A policy might offer coverage for:
Injuries caused to other people
Property damage caused to other people’s property
Slander and libel claims
False arrest or imprisonment claims
How Do Personal Umbrella Policies Differ from Excess Liability Policies?
Excess liability policies are another form of supplemental liability insurance. Unlike personal umbrella policies, though, excess liability policies typically only supplement a single policy and don’t add any coverages that the policy doesn’t already afford. In contrast, personal umbrella policies may supplement multiple underlying policies at once and/or fill in coverage gaps.
Does Personal Umbrella Insurance Cover Property?
Personal umbrella insurance is primarily intended to provide supplemental liability protection and therefore, usually doesn’t include protection for physical property. People can normally find all the property coverage they need for a home, car, boat or other asset through the appropriate primary policy.
Do Personal Umbrella Policies Cover Small Businesses?
A few personal umbrella policies may be able to extend coverage to small businesses, but they generally aren’t meant to insure commercial endeavors. Individuals with small businesses often need a commercial umbrella policy for their business.
Do Personal Umbrella Policies Cover Everyone in a Family?
Many personal umbrella policies will extend their coverage to the spouse and/or children of the policyholder. Before assuming that their particular policy extends coverage, however, policyholders should review the policy’s language to make sure they understand what protection it affords. An experienced insurance agent can help with this process.