Personal Liability Coverages
Personal liability insurance policies cover bodily injury, personal injury, and property damage. It’s important to note that an umbrella policy extends certain coverages that you already have and pays any overages that those policies do not cover.
Bodily Injury Coverage
The bodily injury coverage pays for expenses that are related to accidents. Most policies cover medical costs and loss of income for the injured people, and it covers funeral expenses if anyone died in the accident. For example, let’s say someone is badly injured in your backyard pool and requires surgery. If your homeowners policy only covers up to $200,000 in medical expenses and the cost of all the medical care is $400,000, your umbrella policy would cover the remaining $200,000.
Personal Injury Coverage
Personal injury coverage covers the costs associated with lawsuits if you are accused of certain things, libel, slander, invasion of privacy, and defamation. This coverage may also pay excess expenses if you are the cause of someone’s false arrest. For example, if you post something online that defames or slanders someone else and that person sees the post, they may sue you. If those costs are more expensive than your standard policy limits, you could be forced to pay the excess from your own personal finances unless you have an umbrella insurance policy.