What is personal umbrella liability insurance?

Answer 1

So does that mean you cannot get an umbrella liability policy without having some primary coverage first? I am a landlord. Let's say I am not concerned about property damage or fire loss, just liability. Is there any type of insurance I can buy just for liability?

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In answer to your question, by its very nature, there has to be underlying coverage in order to have an unbrella policy. Otherwise, there is nothing for the umbrella to supplement. Different insurance companies have different underwriting requirements as to the amount of underlying coverage you much have to get an umbrella of a stated amount.

Since you are a landlord, and presumably want coverage on the rental property, you may want to look into a Commercial General Liability insurance policy. It is a broad form of policy that covers an array of risks. Only a licensed insurance agent can advise you on what is best for your needs. However, since it is rental property, I do not understand why you would not want insurance on the property itself, such as fire insurance, unless the property is uninsurable.

--Luke Brown

Answer 2

An umbrella policy is one that sits "atop" a primary policy. That is, it provides additional coverage when the primary policy limits become exhausted.

Most all umbrella policies are substantially less costly than primary policies, because the primary policy bears the brunt of most claims. Largely, this is because many or most claims are settled within primary policy limits, so that the umbrella policy is not involved. Further, the primary policy bears the main responsibility for investigating the claim, defending the insured (by hiring and paying an attorney), and related suit costs. Finally, umbrella policies usually require that some minimum level of primary insurance be in force as a condition of issuance of the unbrella coverage.

A "personal umbrella" contemplates all of the foregoing considerations, but applies only to personal lines, not commercial insurance. Personal lines includes insurances such as private passenger vehicle, homeowners.