Many primary personal insurance policies come with selectable limits that let policyholders customize their coverage to their needs. While these limits are sometimes high, there usually is an upper limit beyond which a primary policy won’t provide additional coverage. For residents of Massachusetts who want more coverage than a primary policy’s upper limit will afford, a personal umbrella policy may be appropriate.
Personal umbrella policies are supplemental insurance policies that are often used to provide coverage beyond what a primary policy will afford. Personal umbrella policies themselves normally aren’t limitless, but their limits are usually quite high. It’s fairly common for these policies to have limits in the millions.
Umbrella insurance policies, like some other types of policies, are frequently categorized as personal policies and business policies. Personal policies are underwritten with the insurance needs of individuals in mind, while commercial umbrella liability policies are normally created for businesses.
There are many Massachusetts residents who might benefit from having personal umbrella insurance. Some people who frequently consider this type of coverage are:
Ultimately, almost anyone can reduce their risk exposure by acquiring personal umbrella insurance so long as they meet their policy’s coverage requirements.
Personal umbrella policies may refer to “underlying policies” within their paperwork. While a policy’s exact definitions are determined within the particular policy’s paperwork, this term usually refers to primary policies that the umbrella policy might supplement.
Personal umbrella insurance and excess liability insurance are similar, but they differ in two significant and important ways.
Personal umbrella policies generally come with their own terms, conditions and exclusions. Thus, they may be able to fill in underlying policies’ coverage gaps and/or simultaneously supplement more than one underlying policy.
Excess liability policies, in contrast, typically adopt the terms, conditions and exclusions of a single underlying policy. Therefore, they can’t fill in coverage gaps or supplement multiple policies in most case. These policies normally only extend the limits of the policy that they adopt the terms of.
Personal umbrella policies are a form of liability insurance. As such, they usually don’t cover personal property or any other type of physical property.
As is true with most other insurance policies, personal umbrella policies’ premiums vary. They are determined by many different factors, and each insurance company in Massachusetts weighs factors differently.
Nevertheless, personal umbrella policies do tend to be highly affordable. While the premium for a policy can vary, it’s generally small compared to how much coverage these policies can afford.
Selecting the right personal umbrella policy requires carefully considering a policyholder’s primary insurance policies, for it’s these policies that personal umbrella policies typically supplement. Additionally, personal umbrella policies often even require that certain primary coverages are in place. If those coverages aren’t properly set up, the umbrella coverage might be compromised.
For help choosing a personal umbrella policy, contact the independent agents at Haberman Insurance Group. Our experienced agents have helped many Massachusetts residents find personal umbrella coverage, and they know how to help you select a policy based on the primary coverages you have in place. If needed, they can also help you adjust your primary coverages so that your umbrella coverage isn’t compromised.