Monthly Archives: July 2012

Why Have Personal Excess, aka Umbrella Liability?

-By Carollee Cabot

It’s disturbing to meet clients who have considerable assets to protect who don’t have Personal Excess/Umbrella Liability protection.  Just last week, I met with a family which has two homes, five cars, two boats and three youthful operators, and didn’t have an Umbrella policy. It was even more disturbing when I learned that they had never been told about it, as the cost is minimal for the protection provided!

Personal Excess/Umbrella Liability provides protection above and beyond your primary (underlying) limits contained in your homeowners and auto liability policies. Should you be sued and the limits in those policies be exhausted, the umbrella policy will pick up and provide additional funds for a judgment or settlement, as well as legal defense.

Another issue some families have is that their primary coverage does not meet the minimum limits required by the umbrella policy, and hence they have a gap in coverage.

Although we hope a bad claim never happens to us or someone we care about, here are some examples of recent liability settlements[1] from ACE Insurance:

Personal Excess Chart




This is pretty scary stuff, but it provides examples of what can happen and why it’s so important to have the proper liability protection for you and your family!  I highly recommend everyone reading this contact your insurance agent to ask about Umbrella Liability Protection!

For more information about this and other insurance questions, email Carollee Cabot, CIC

[1] The information provided regarding verdicts was drawn both from company loss experience as well as from a variety of third-party internet and other sources considered to be generally reliable, but ACE PRS has made no effort to independently verify any of the third-party data.  The verdict information should not be considered typical or predictive of outcomes in other cases or any indication regarding how ACE PRS would handle similar claims.