Umbrella insurance, also known as excess liability insurance, protects policyholders from potential financial disaster if a large liability lawsuit is filed against them. This secondary coverage is designed to kick in when the liability coverage offered by your primary insurance policies is exhausted.
For instance, if your homeowners insurance policy has a liability coverage limit of $300,000 and a legal settlement against you totals $500,000, you are responsible for paying the remaining $200,000. But if you carry a $1 million umbrella insurance policy, it would cover the $200,000 deficit.
Personal umbrella policies can boost the liability coverage in your home, auto, motorcycle, boat, RV, or other insurance policies. Commercial umbrella insurance can increase a company's general liability insurance coverage. Talk to a local independent insurance agent to learn how Pennsylvania umbrella insurance can help you.