Farmers Personal Umbrella Coverage Jeff Hastings – District Manager Kristin Wilson – District Training Asst.

General Information Umbrella policies are aptly named as they are designed to provide a blanket of liability coverage over underlying policies.

General Information The Personal Umbrella may well be one of the most important insurance coverages available today. Increasing litigation & court settlements are creating the need for higher limits of liability protection. Generally, the maximum limits of coverage on most primary, also called underlying, policies are not adequate should a catastrophic liability loss occur.

General Information The personal umbrella provides two types of liability coverage: Excess liability protection over underlying coverage. This coverage is stacked on top of the underlying coverage to provide total limits equal to the sum of both. Coverage for unknown, unexpected and therefore, uninsured losses (subject to exclusions) when there is no underlying insurance. In these cases, the insured is expected to participate in the settlement by retaining the first portion of the loss. This self-insured retention (SIR) is $1000 in Texas.

Who’s covered? The personal umbrella provides coverage for the named insured and resident relatives of the named insured’s household. Resident relatives are defined as persons living with the named insured related by blood or marriage and persons under 21 in the care, custody & control of the named insured.

Farmers Special vs. Truck Umbrellas Farmers personal umbrella coverage is written in one of two companies based upon the underlying exposure. Special Umbrella Must have all underlying policies with Farmers Less expensive Lower underlying limits required Truck Umbrella Must have underlying auto policy with Farmers More expensive Higher underlying limits required

Binding Authority Special Umbrella You may bind coverage for $1 or $2 million, subject to the guidelines Limits above $2 million, up to $5 million, must be submitted for approval to Underwriting Truck Umbrella You may bind coverage for $1 million, subject to eligibility guidelines Limits above $1 million, up to $5 million, must be submitted for approval to Underwriting

Customer Selection- Ineligible exposures: Any risk that is not eligible under our Companies’ preferred property & auto personal lines customer selection guidelines Any risk with a commercial exposure Any risk to be scheduled on the Umbrella that does not have underlying liability coverage Any risk for which rates are not provided in the manual

Customer Selection- Ineligible applicants: Any risk that has motor vehicles, incl. recreational vehicles, that do not have liability insurance Any risk who has had a judgement entered against them for libel or slander Any risk who provides child care