Excess Liability & Umbrella Policies
Excess Liability and Umbrella policies provide additional protection to your assets and are only available when there is an underlying liability policy in force.
Should you be sued and found at fault for damages to another party, your underlying liability policy will be the first to pay out expenses. If you are found liable for more than the underlying policy covers, the excess liability or umbrella policy will then kick in and pay the remainder of the expenses, up to the limit of that policy. For example, if there is a fire in your rental property and it spreads to another unit, the amount of liability provided in your underlying policy may not be enough to cover the expense of the total necessary repairs. The excess liability or umbrella policy, which provides a minimum of $1 million, would assist in paying the remainder of the repairs, up to the full amount of that policy.
This is an excellent way to add an additional layer of protection to your assets. The coverage extends to household members of the policy holder and also covers legal defense costs.