Umbrella Personal Liability Policy

What is ‘Umbrella Personal Liability Policy’

A type of insurance policy that provides excess coverage above and beyond the liability coverage amounts in a standard insurance policy. The umbrella policy provides extra protection in the event that a lawsuit exceeds the basic level of coverage in the standard policy.

Explaining ‘Umbrella Personal Liability Policy’

An umbrella personal liability policy extends the basic coverage provided in different types of liability coverage, including home, auto, boat and tenant policies. This type of policy provides broad coverage, meaning that some claims that would not be covered by a standard policy may be covered under the umbrella policy. However, an umbrella policy only kicks in once the regular coverage amount is exceeded. Generally, the insured’s standard policies must contain minimum levels of liability coverage that are specified by the insurance company in order to add an umbrella policy, and therefore, greater liability coverage.

Further Reading

  • Quantifying the economic benefits of personal financial planning – [PDF]
  • The Just's Umbrella: Austerity and the Big Society in Coalition policy and beyond – [PDF]
  • The finance sector in transition: A motor for economic reform? – [PDF]
  • E. Banks, The Palgrave Macmillan Dictionary of Finance, Investment and Banking© Erik Banks 2010 – [PDF]
  • Financial literacy: An overview of practice, research, and policy – [PDF]