High Cost Lawsuit Coverage

Million Dollar Plus Protection

Excess Liability Coverage usually comes in dollar amounts ranging from a million dollars and up. It gets added on as a rider or as an umbrella policy for watercraft, home, or car policies. You also get additional protections against things like slander and invasion of privacy, as well as your actions around the world, which would not fall under the auspices of a standard home or auto policy.

Personal Umbrella Policy Purchasing excess liability coverage is usually very easy but it is not as easy to get online like car insurance. This is because your agent will want to know the value of your house, if you have a pool, how many people live in the house, and whether you have any renters. (Excess liability can cover lawsuits for wrongful eviction, false arrest, and other things that happen on your property.) Your agent may also want to know if there are any things about your property that would lead to exotic claims, such as a backyard roller skating rink or a history of caskets popping out of the ground and knocking guests into unfinished swimming pools.

Legal and Court Fee Costs

A big factor in excess liability/PUP involves legal defense costs. Court costs and legal fees often dwarf the actual damage or award that is granted after a multi-year lawsuit, so even if you were to prevail then someone has to pay off the attorneys. Legal liability can extend to members of your household who cause injuries and property damage. Once again, your regular policy may cover a certain amount of the claim, but the umbrella policy is likely to cover the rest unless the claim is astronomical.

Can Include Public Relations Costs, Slander Insurance

Who should get excess liability coverage? Generally, if you own your own home and have some assets to protect, getting insurance is not a bad idea. If you have pets that could injure guests, or a swimming pool, or jet skis, or have a private plane, then you could find yourself on the wrong end of a high dollar lawsuit. However, you don't have to be a celebrity or millionaire to get coverage beyond standard liability policies.