We believe a personal umbrella liability policy is more important than ever. With today’s high liability claims, a $300,000 or $500,000 liability limit may not be enough. In addition, recent changes in the homeowners policies have given you more exposure than before. The umbrella policy may be able to fill in some gaps in coverage.

Most of the new homeowner policy forms exclude liability coverage for anything involving mold. Some of the umbrella markets have followed this trend and have added exclusions to coincide with the homeowners policy, but not all have, so the opportunity to fill gaps in coverage is still available.

For example: Let’s say, unbeknownst to you, the home you just sold had toxic mold throughout the house. The buyer had an opportunity to test for mold, but you told him it was a great home and not to worry about it. Six months later the new owner becomes ill and his doctor blames his life-threatening illness on the mold in the house. His attorney vows to make you pay for the purchaser’s pain and suffering.

You now learn that your homeowners policy will not defend this suit because liability due to mold is excluded. How is this coverage problem resolved so you don’t lose everything? It is solved with a personal umbrella policy that includes injury from mold and/or other fungi. The umbrella policy will pick up the tab, and then bill you for the self-insured retention (which is normally $1,000).

If you want to know more about how an umbrella policy can protect your assets, or the cost of a personal umbrella policy, please let us know.