Umbrella Personal Liability Policy

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Wrap-Up Insurance

    A liability policy that serves as all-encompassing insurance ...
  2. Adequacy Of Coverage

    The adequacy of coverage concerns how well your insurance policies ...
  3. Bridge Insurance

    Insurance coverage for bridges. This type of insurance covers ...
  4. Umbrella Insurance Policy

    Extra liability insurance coverage that goes beyond the limits ...
  5. Insurance

    A contract (policy) in which an individual or entity receives ...
  6. Liability Insurance

    Any type of insurance policy that protects an individual or business ...
Related Articles
  1. Cover Your Company With Liability Insurance
    Home & Auto

    Cover Your Company With Liability Insurance

  2. It's Raining Lawsuits: Do You Need An ...
    Home & Auto

    It's Raining Lawsuits: Do You Need An ...

  3. Filling The Gaps In General Liability ...
    Home & Auto

    Filling The Gaps In General Liability ...

  4. Do You Need Casualty Insurance?
    Insurance

    Do You Need Casualty Insurance?

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center