Private Client

Personal Umbrella Insurance for Households With Substantial Assets

Underlying homeowners and auto policies carry liability limits, and a claim may exceed them. Excess liability insurance adds limits above those policies, and an umbrella form may also respond to certain claims the underlying policies do not, generally subject to a retention. Neil Jesani Risk Management structures personal liability programs around the assets, activities, and household arrangements that sit behind the exposure.

Call (800) 755-3469

Where Personal Liability Reaches Past Underlying Limits

Liability exposure tends to grow quietly, and often faster than the limits set alongside it. The exposures below are the ones that most often prompt a review.

  • ◆Auto liability limits that may not reflect the judgment exposure of a household with substantial assets
  • ◆Household employees, and claims arising from their employment or their conduct
  • ◆Young or newly licensed drivers listed on the household policy
  • ◆Service on a nonprofit or association board, which an umbrella may not extend to without an endorsement
  • ◆Rental properties, secondary residences, and short-term lets, along with the liability that follows them
  • ◆Defamation, libel, and slander claims, including those arising online, which some umbrella forms address and others exclude

Coverage We May Place Within a Personal Liability Program

Personal Umbrella
Additional liability limits above underlying homeowners and auto policies
Excess Liability Layers
Further limits stacked above an umbrella, generally following the terms of the layer beneath
Uninsured / Underinsured Motorist Excess
Available on some forms and in some states; availability and structure vary
Nonprofit Board Service (D&O)
Placed separately where an umbrella does not extend to board activity
Watercraft & Aviation Liability
Coordinated where an umbrella limits or excludes these exposures
$1M–$50M+
Limits placed, single policy through layered towers
Drop-Down
Available on umbrella forms, subject to a retention
24/7
Client helpline for claims and urgent matters

Frequently Asked Questions

How are limits set for high net worth umbrella insurance programs?

Limits for high net worth umbrella insurance are generally sized against what a judgment could reach — assets and income — and against exposures such as property, vehicles, staff, and public visibility. An advisor can model this.

When does personal umbrella insurance respond to a liability claim?

Personal umbrella insurance generally responds once an underlying home, auto, or watercraft limit has been exhausted by a covered claim. Some forms also address exposures the underlying policies exclude, subject to a retention.

Do carriers require minimum underlying limits for excess liability insurance?

Carriers generally set minimum limits on the auto, homeowners, and watercraft policies sitting beneath excess liability insurance. A shortfall on one underlying policy can change how the layer responds to a claim.

What is the difference between an umbrella policy and an excess liability policy?

An excess policy generally follows the terms of the underlying coverage and responds once that limit is exhausted. An umbrella form may follow those terms and also respond to certain exposures the underlying policies exclude, subject to a self-insured retention.

Review the Limits on Your Personal Liability

Our advisors place personal umbrella insurance and excess liability programs structured around underlying limits, household arrangements, and the assets sitting behind them. Contact us to discuss your current coverage and where it stops.

Call (800) 755-3469