The Personal Umbrella Policy was designed to provide coverage in the event of a catastrophic claim, lawsuit, or judgment. Personal umbrella policies provide excess liability insurance over the insured's basic primary policies, such as the homeowners, personal auto and boaters policies. Coverage is provided on a worldwide basis for the entire family. Umbrella policies pay only after the limits of the underlying primary policies are exhausted. Coverage is usually broader and applies to some loss exposures not covered by the primary policies. A typical umbrella policy will provide coverage on a single limit occurrence basis. Coverage provides for bodily injury and property damage liability. Defense costs are also covered, normally in addition to the liability limit, and sometimes written as a part of the total limit. A self-insured retention must be met when certain losses are covered under the umbrella policy but not covered under the primary policy. The insurer requires the insured to carry certain minimum amounts of liability on primary policies. Coverage under a personal umbrella policy can vary depending on the insurer since there is not a standard form.

PERSONAL INJURY LIABILITY

Under the personal umbrella policy the coverage is defined to include coverage for bodily injury, coverage is also provided for false arrest and imprisonment, wrongful entry, libel, slander, defamation of character or invasion of privacy, and assault and battery, when not intentionally committed or directed by an insured.

PROPERTY DAMAGE

Under the personal umbrella policy, property damage is any physical injury to tangible property, which includes loss of use of the property. Coverage is also provided to pay losses for personal injury or property damage for which the insured is legally liable and which exceeds the primary policy limits.