What is Personal Umbrella Insurance?

Mar 09 10:13 am
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What is a Personal Liability Umbrella? How does a Personal Umbrella work? Do I need Personal Umbrella Insurance? RLI Insurance Company, one of our top Umbrella Insurance companies, just released this great video explaining how a Personal Umbrella Liability Policy can protect your Savings, Income, Home, or Business.

A Personal Liability Umbrella adds an extra layer of Liability Insurance over your Cars, Home, and Boats. The Personal Liability Umbrella policy pays when you are legally obligated and financially responsible for damages that exceed your policy limits. The Umbrella policy will not only pay the costs of defending a Personal Liability lawsuit, it will also pay for any damages awarded against you up to the limits of the Umbrella- $1,000,000 or more.

People always ask us, "How much Liability should we carry?". Our answer is always, "As much as you can afford." With a Personal Liability Umbrella, you have an inexpensive way to cover yourself against the Catastrophic law suit. Personal Umbrellas only cost a few hundred dollars a year.

Here's some real-life claims that were paid by Umbrellas:

  • Two-lane Road Incident: The insured was driving on a two-lane road when he struck a pedestrian walking home from work. The pedestrian suffered serious head trauma. The insured was not speeding,there was no alcohol involved and cell phone records show thatno phone was in use at the time of this accident.
  • Outcome: RLI paid the $2,000,000 Personal Umbrella policy limitafter the insured's underlying auto limit of $500,000 was exhausted.


  • Impared Driver Incident: The insured was driving a vehicle when it was struck in the rear at high speed by an uninsured driver who was intoxicated. The insured was airlifted from the accident scene to a hospital. He sustained spinal injuries and other complications asa result of the accident.
  • Outcome: Because the RLI Personal Umbrella Policy included coverage for Excess Uninsured/Underinsured Motorists with a policy limit of $1,000,000, the insured was paid the full $1,000,000 for an accident that was not his fault.


  • Incident: The insured was driving on a highway when she was rear ended by another driver, causing her car to hit a light pole. The other driver was uninsured and attempted to flee the scene but was apprehended. The insured sustained serious injuries to her body.
  • Outcome: The insured's primary insurance company paid out the full Uninsured Motorist limit. Unfortunately, it still left the insured with $260,000 in medical expense. Thankfully, the RLI Personal Umbrella Excess Uninsured Motorist coverage paid the remaining expenses of $260,000.


  • Boat accident incident:The insured was operating a ski boat on a lake. As theboat turned, an inner tube with rope tied to it blew out of theboat. The rope caught the leg of the passenger and launchedhim out of the boat and onto the dock. The passenger sustainedsubstantial injuries and was totally disabled for six weeks, leadingto a business income loss.
  • Outcome: The primary insurance company tendered its full policylimit, which was $500,000 short of the total claim amount. TheRLI Personal Umbrella Policy covered the remaining amount.Without the personal umbrella policy, the insured would have hadto pay the $500,000 out of pocket.

Call Cronin Insurance today at 561-479-1898, or text us at 561-231-5377 or contact us by email. and ask about a Personal Liability Umbrella. With a Personal Umbrella, you can feel confident you have enough coverage against a Liability lawsuit.

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