Many people believe that umbrella and personal liability insurance are the same thing. While they have similarities, both have key differences that you should know about.
What is umbrella insurance?
Umbrella insurance is extra coverage that extends beyond standard liability policies such as homeowners and auto insurance. It can cover bodily injury, property damage, landlord liability, legal fees, and injury to someone’s reputation.
What is personal liability insurance?
A standard homeowners, renters, or auto insurance policy typically includes personal liability insurance. It provides coverage to pay for claims of bodily injury or damage you cause to others or their property. For example, it can cover medical bills or legal fees resulting from someone getting injured in your home.
What are the key differences?
- Coverage Limits: Depending on your policy, personal liability insurance typically has lower coverage limits. For example, homeowners insurance usually includes a minimum of $100,000 in personal liability coverage. Umbrella insurance generally has more protection, with most policies starting at $1 million.
- Range of protection: Personal liability insurance will only cover what is outlined in your standard policy. Umbrella insurance offers broader coverage, such as protection against slander, libel, or defamation of character.
- Cost: Personal liability insurance is included in the cost of your standard policy. Umbrella insurance is an additional cost from your standard policy but is considerably inexpensive for its coverage.
Which one do I need?
To find out which plan works best for your needs, contact one of our experienced Avery Hall agents today for a free consultation at 410-742-5111.