A personal umbrella policy provides higher limits of liability insurance for your car insurance and homeowners policies. Increased limits of liability are beneficial in the event that an automobile accident or a homeowners liability incident results in an injury and a subsequent lawsuit filed against you. Umbrella insurance is worldwide and intended for personal exposures only.
An umbrella insurance policy also offers protection against personal injury liability, such as libel, slander and defamation of character, which are not covered by car insurance or homeowners policies. Applicants must have and, if accepted, must maintain personal car insurance issued by NJM. The underlying auto and homeowners policies each must have a liability limit of at least $500,000. Members of homeowners or condominium associations must carry, at a minimum, $50,000, in loss assessment coverage.
The base premium for an NJ umbrella policy with $1,000,000 of excess liability coverage for a risk involving two cars, one residence, no inexperienced drivers and no other liability exposure will range from $250 to $320.