Disclaimer:  These definitions are for general reference only.  Consult your policy

for definitions as well.  Definitions may vary.

Personal Auto Coverage Description

Liability Coverage

The liability coverage of the personal auto policy provides protection against legal liability arising out of the ownership or operation of an automobile. The insuring agreement agrees to pay damages for bodily injury or property damage for which the insured is legally responsible because of an automobile accident. The liability limit can be written as a single limit that applies to both bodily injury and property damage. The policy can also be written with split limits in which the limits of insurance for bodily injury and property damage are stated separately.

The insuring agreement also states that in addition to the payment of damages for which the insured is legally liable, the insurer also agrees to defend the insured for all legal defense costs. The defense cost is in addition to the policy limits.

Medical Payments Coverage

The insuring agreement states that the insurer will pay all reasonable and necessary medical and funeral expenses incurred by an insured because of bodily injury caused by an accident. Payment can be made for expenses incurred within three years from the date of the accident. The insured is the named insured and family members, and any other person injured while occupying a covered auto. Pedestrians or cyclists are also considered the insured when struck by a vehicle. These payments are made without regard to fault.

Uninsured/Underinsured Motorist Coverage

Uninsured Motorist Coverage

This insuring agreement pays for bodily injury to an insured who is injured by an uninsured motorist, a hit-and-run driver, or a driver whose insurer becomes insolvent. Some states offer coverage for property damage as part of the uninsured motorist coverage. Usually when property damage is added a deductible would apply.

Underinsured Motorist Coverage

This coverage can be added to the policy to supplement the uninsured motorist coverage. The coverage must be added to all automobiles listed on the policy, and it must be added for the same limit as the Uninsured Motorist Coverage. Underinsured motorist coverage applies when a negligent driver has liability limits at the time of an accident, but the liability limits carried may be insufficient to pay for damages that the negligent driver is responsible for. This is when the insured's underinsured motorists coverage would apply and payment for the difference could be made. The two coverages are mutually exclusive and do not overlap or duplicate each other. An insured can collect under one coverage or the other depending on the situation, but not under both.

Physical Damage Coverages

Collision Coverage

This coverage provides protection against the upset of your auto or non-owned auto or a collision with another vehicle or object. Collision losses are paid regardless of fault and generally subject to a deductible.

Specified Cause of Loss Coverage

This coverage provides protection only for certain losses. The losses are fire, lightning, explosion, theft, windstorm, hail , earthquake , flood, mischief, vandalism, and the sinking, burning, collision, or derailment of a conveyance transporting the insured vehicle.

Comprehensive (Other than Collision) Coverage

This coverage provides protection against any loss or damage to a covered auto resulting from loss other than a collision or upset, or a loss specifically excluded. Examples of such coverage would be hail, vandalism, theft , and acts of God. This coverage also provides for supplemental payments for transportation expenses in the event of total theft of a covered auto or a non-owned auto. The auto must be insured for comprehensive or specified cause of loss coverage. Coverage begins forty-eight hours after a theft of a covered auto. Payments end when the auto is returned to use or the insurer pays for its loss. Comprehensive coverage generally includes a deductible.

DEDUCTIBLE:

Endorsements

Extended Transportation Expense Coverage (Rental Reimbursement)

This coverage applies when a covered auto or non-owned auto is withdrawn from use more than twenty-four hours due to a loss, other then theft. The insuring agreement agrees to pay up to the stated amount for expenses incurred in renting a vehicle. The coverage usually carries a per day limit and a maximum amount limit.

Towing and Labor Coverage

This coverage pays for towing and labor cost each time a covered auto or non-owned auto is disabled, up to the stated amount.

Personal Injury Protection (PIP)

This is an endorsement that adds no-fault benefits. No-Fault means that in the event of an automobile accident, each party collects from his or her own insurer regardless of fault. No-fault benefits are limited to the injured person's actual economic loss, and are paid as specified by the law of the insured's state. Payment could be made for such losses as loss of earnings resulting from bodily injury and medical and funeral expenses. Other expenses can also be considered. The PIP endorsement is only available in certain states with No-Fault Laws. The endorsement applies only to bodily injury and not to property damage in most states. No-Fault Laws vary widely from state to state.

    Boat Owners Coverages

The boat owners policy provides a combination of coverages . Most policies will provide coverage for liability, physical damage, and medical payments. Some policies offer additional coverages such as, emergency service, life salvage coverage, coverage for repairs after a loss, coverage for emergency first aid, and uninsured boaters coverage. The emergency service might cover such items as towing, delivery of fuel, and mechanical labor in case of breakdown. Life salvage would give compensation to other people who act to save human life if a boating accident occurs. Coverage for repairs after a loss would pay any reasonable expenses for repairs to protect covered property from further loss. Emergency first aid pays reasonable expenses incurred by an insured giving first aid to others at the time of an accident.

Uninsured boaters coverage allows the insured to be compensated for any bodily injury damages for which they are legally entitled to, because of an accident with an uninsured boater. Some additional coverages are offered as part of the policy and others are offered for an additional premium.

Boat

This amount of insurance applies to the boat (sometimes referred to as the hull). This limit provides physical damage insurance for the boat, and any permanently attached equipment, such as the inboard motor.

Outboard Motor

This limit of insurance would apply if an outboard motor is attached to the boat. An inboard/outboard motor would be covered under coverage A since it is a permanent attachment.

Boat Equipment

This limit applies to any portable boat equipment or accessories. Some items that may be included in this limit are; dinghies, tenders, life preservers, cushions, fire extinguishers, anchors, oars, citizen band radios, ship to shore radios, and other transmitting and receiving equipment while used in or on the boat.

Trailer

This limit applies to the trailer. Very few policies include this coverage under boat equipment.

Liability

This limit provides liability insurance for the insured or any other person using the boat with the insured's permission. Coverage is provided for bodily injury and property damage arising from the ownership or operation of the boat.

Medical Payments

This coverage pays the necessary medical expenses incurred by a covered person within one to three years from the date of a boat accident. A covered person is the insured, a family member, or any person occupying the boat at the time of an accident. Payment could be made for such expenses as medical and dental x-ray's and services, nursing fees, ambulance charges, and funeral expenses.

Deductible

This amount applies to each occurrence and each boat or trailer listed in the policy. The insurer is obligated to pay only when a covered loss exceeds the deductible shown in the policy.

Condo Coverages

The H0-6 policy is a special form of homeowners insurance that was designed to meet the unique insurance requirements of owners of condominium units and cooperative apartments. An insured can only qualify for an H0-6 policy by being an owner occupant of a residential condominium unit or a cooperative apartment. The insured premises is defined as the unit where the insured resides, an H0-6 policy can not be used to insure a unit owned by the insured but rented or leased to others. The condominium unit is defined as the space between the walls, ceiling and floor. Sometimes unit owners are responsible for parts of the unit beyond the walls, ceiling and floor. Condominium unit owners also have an undivided interest with other unit owners in common areas of property.

Common areas of property could include the land, stairways, halls, parking and storage areas, and the heating and cooling system. The unit owner's responsibilities are usually outlined in the condominium agreement and bylaws. The major loss exposures for unit owners are loss to real property, loss to personal property, and legal liability. The following is a basic outline of the H0-6 policy and the endorsements most widely used on the H0-6 policy.

Dwelling

This coverage applies to the insured's real property, which is the unit. Coverage is provided on a named perils basis and is separated into four categories.

The first category includes alterations, appliances, fixtures, and improvements that are part of the building and contained within the residence premises such as built-in appliances and cabinets, electrical fixtures, and similar items of this nature.

The second category relates to items of real property that pertain exclusively to the residence premises, such as exterior glass or trees and shrubs that may be located on a patio that is part of the residence premises.

The third category includes property that is the responsibility of the unit owner to insure under an agreement of a corporation or association of property owners. Insurance for this category of property provides coverage for any portion of the common areas of the building that the association agreement states is the insurance responsibility of the unit owner.

The final category of property relates to structures owned solely by the insured at the location of the residence premises but are not a part of the residence premises. This category could include a private garage that was not attached to the residence premises but located elsewhere in the condominium complex.

The basic limit of liability under coverage A is $1,000, which should in most cases be increased.. If the association or cooperative insurance policy is written on a bare walls basis, then the unit owner would have to provide coverage for the entire interior of the unit. It is important for the unit owner to review the condominium or cooperative association's coverage to determine if the basic limit for Coverage A of the H0-6 policy is adequate.

Personal Property

This coverage limit applies to the personal property of the unit owner. The limit of insurance is selected by the unit owner. The unit owner's personal property may include such items as furniture, clothing, television and stereo equipment, books, records compact discs and tapes. It could also include any items not considered part of the building structure. Items such as carpeting, if placed over finished flooring, would be considered personal property, but carpeting placed wall to wall over a rough subfloor or concrete slab is usually considered part of the building.

Loss of Use

This coverage is provided if a loss is caused by an insured peril to covered property or to the building containing the property, if it makes the residence premises unfit to live in. The limit of insurance is 40 percent of Coverage C limit.

Personal Liability

This provides coverage if a claim is made or suit is brought against the insured because of bodily injury or property damage caused by a covered occurrence. Personal liability has a basic limit of $100,000 per occurrence, which can be increased for an additional premium.

Medical Payments

This coverage will pay the necessary medical expenses that are incurred or medically ascertained within three years from the date of an accident causing bodily injury to someone other than an insured. Coverage applies to accidents that occur on the insured premises, or any location, when caused by action of the insured.

Endorsements

The following endorsements relate specifically to the HO-6 policy.

Unit Owners: Special Coverages (A)

This endorsement can be used to change Coverage A of the HO-6 to provide coverage for risk of direct loss. When this endorsement is used, all direct loss to real property, which is the unit, is covered unless specifically excluded.

Unit Owners: Rental to Others

This endorsement provides property and liability coverage for the unit owner while the residence premises is regularly rented or held for rental to others. Theft coverage is provided for personal property at a rented condominium, however, high value items are not covered. Coverage for medical payments are also included.

Loss Assessment Coverage

This endorsement increases the limit of liability for the loss assessment coverage provided in the policy.

Loss Assessment Coverage for Earthquake

This endorsement provides coverage for loss assessment made against the unit owner by a corporation or association of property owners due to the peril of earthquake.

Unit Owners: Special Coverage (C)The H0-6 provides coverage on a named-peril basis, when this endorsement is added, Coverage C is changed to provide coverage for all direct loss to personal property unless specifically excluded.

DWELLING FIRE COVERAGE DESCRIPTION

The dwelling policy provides property coverage for the dwelling and its contents. Many of the coverages found in the dwelling policy are found in the homeowners policy, but there are some differences. The dwelling policy tends to provide narrower coverage than the homeowners policy. The insured under the dwelling policy is the named insured and the spouse, if a resident of the same household. The DP-03 dwelling policy form is the broadest and provides coverage for the dwelling, other structures, personal property, fair rental value and additional living expenses.

In addition to these coverages , the policy provides additional coverages for reasonable repairs, property removed, fire department service charges, debris removal and coverage for trees, shrubs, and other plants. The dwelling forms do not provide coverage for liability, theft, or medical payments. However, such coverages are available through a personal liability supplement endorsement and a theft endorsement.

Dwelling

This amount of insurance applies to the dwelling described in the policy and any attached structures. Building equipment and outdoor equipment used for servicing of the building and located on the described premises is also covered.

Other Structures

This coverage applies to detached structures such as a garage or storage shed. The limit of insurance coverage is set at 10% of the dwelling limit for loss to other structures.

Personal Property

This coverages applies to personal property that is usual to the occupancy of a dwelling. The coverage applies to personal property owned or used by the insured or resident family members, while the property is on the described location. The limit of insurance for this coverage is chosen by the insured.

Fair Rental Value

Under the broad and special dwellings forms, coverage is provided for fair rental coverage for that part of the residence premises that is rented or held for rental to others. If a loss occurs under coverage A that makes that part of the premises unsuitable for living, this coverage would pay the lost rental value. The limit of insurance is 10% of the dwelling limit. Fair rental value is the amount of rent that could reasonably be charged for the premise.

Additional Living Expense

Under the broad and special dwellings forms, coverage is provided for additional living expenses in the event of a loss under Coverage A. If the insured was to temporarily lose use of the dwelling, this coverage would apply and payment could be made for expenses incurred to live elsewhere following a loss that makes the dwelling unsuitable for living.

Deductible

The dwelling policy has a standard deductible of $500, and varies by carrier.

Endorsements

Personal Liability Supplement

Liability coverage is not automatically included in dwelling policies, however, coverage is available by adding a personal liability supplement to the policy. Liability coverage can be added for a residence premise as long as the insured resides in at least one of the family units; the residence premise can be a three or four family dwelling. The limit of liability is $100,000 per occurrence. Coverage is provided for bodily injury and property damage. Medical payments coverage is also included in the liability supplement. The limit for medical payments is $1,000 per person, the coverage will pay the necessary medical expenses for bodily injury of others when caused by action of the insured.

Residential Theft Coverage Endorsement

Theft coverage is not automatically included in dwelling policies, however, coverage may be added with a broad theft coverage endorsement or a limited coverage endorsement. The limited theft coverage endorsement is available for dwellings that are not owner-occupied. The broad theft endorsement is only available to owner-occupied dwellings, and can apply to on and off premise theft. Both endorsements provide coverage for theft, attempted theft, and vandalism or malicious mischief as a result of theft. Special limits apply to certain personal property, and certain property is excluded on both endorsements.

Homeowners Coverage Description

The homeowners policy provides protection against the financial consequences of personal losses. A homeowners policy is a combination of property and liability coverages . The homeowners policy is tailored to meet the needs of a homeowner. The following is a basic outline of the homeowners (HO-3) policy and the endorsements most widely used on the HO-3 policy.

The HO-3 policy provides coverages for one or two family dwellings that are owner occupied. The HO-3 policy provides coverage against risks of direct physical loss to real property, except for those causes of loss that are specifically excluded. Personal property is covered against direct physical loss caused by a specified peril. In addition to the coverages stated under Section I, several additional coverages are included. Some of the coverages included are; debris removal, fire department charges, reasonable repairs charges, property removal charges, and coverage for trees, shrubs and plants. Coverage is also included for loss involving credit cards, forgery, and counterfeit money. These additional coverages are included to provide protection for the insured following a covered property loss. Each additional coverage has limitations and is subject to certain conditions.

Dwelling

This amount of insurance applies to the dwelling and attached structures. The limit of insurance for the dwelling is based on the value of the home and what it would cost to replace the home.

Other Structures

This coverage limit applies to detached structures such as a garage or storage shed. The limit of coverage is set at 10% of the dwelling. The insured can purchase a higher limit.

Personal Property

Coverage C provides worldwide coverage for personal property of the insured. Special limits apply to some types of property, and some property is excluded from coverage. The overall limit for coverage C is 50% of the dwelling limit. Coverage C can be modified in several ways with endorsements.

Loss of Use

This coverage applies in the event of a loss under Coverage A. If the insured was to temporarily lose use of the dwelling this coverage would apply. Payment would be made for expenses incurred to live elsewhere following a loss that makes the home unsuitable for living. Another method used to determine payment for loss of use is fair rental value, which is the amount of rent that could reasonably be charged for the premises, less any expenses that do not continue while the premises are unsuitable for living.

Personal Liability

Section II of the homeowners policy provides liability coverage for personal loss exposures. The insuring agreement under Coverage E provides liability coverage if a claim is made or suit is brought against an insured because of bodily injury or property damage. Coverage is provided for the residence premise as well as any other premises used by the insured, as a residence, permanently or temporarily. Liability coverage is provided for the named insured and members of the named insured's household who are relatives. Personal liability has a basic limit of $100,000 per occurrence, which the insured may increase for an additional premium. In addition to the basic limit, Coverage E also provides additional coverages for expenses such as defense cost, expenses incurred providing first aid to others, damage to property of others and loss assessment charges. The additional coverages provided under Section E are subject to limitations and certain conditions.

Medical Payments

This coverage will pay the necessary medical expenses for bodily injury of others. Coverage applies to accidents that occur on the insured premises or any location when caused by action of the insured. The coverage has a basic limit of $1,000 per person. The insured may select higher limits.

Endorsements

Inflation Guard Endorsement

When this endorsement is added to the policy, it increases the limit of coverage for A, B, C, and D. The insured selects the percentage of increase for the year and the limits are automatically increased at certain dates throughout the year.

Earthquake Coverage Endorsement

Earthquake coverage is excluded under Section I of a homeowners policy. Adding this endorsement removes the exclusion and adds earthquake coverage which is subject to a deductible for each coverage under Section I.

Increase Other Structures Limit

This endorsement increases the limit under coverage B, Other Structures. The limit for unattached structures on the residence premise would be increased, and the increase would be in addition to the limit already provided.

Increase Special Limits

Certain types of personal property under Coverage C have special limits of liability. Adding this endorsement increases the limit for those particular types of property.

Scheduled Personal Property

The scheduled personal property endorsement is used to provide coverage for risk of direct loss for such items as jewelry, furs, cameras, musical instruments, silverware, golfer's equipment, fine arts, postage stamps and rare coins. Scheduled property can be insured for any amount the insured requires.

Personal Property Replacement Cost

Property loss settlements under the homeowners policy are made on an actual cash value basis. When the replacement cost endorsement is added, the loss settlement payment would be sufficient to replace the item for the cost at the time of loss without deductions for depreciation.

Inland Marine Personal Articles Coverages

An inland marine policy provides coverage for property transported from one place to another, goods in transit, bridges, tunnels, television broadcasting towers and other means of transportation and communication. Inland marine insurance also includes various floater policies that provide coverage for personal property. An inland marine floater policy is used to provide coverage that floats or moves along with the covered property as it changes locations. There are no standard inland marine floater policies, however, most floater policies share the following four characteristics: (1) The coverage can be tailored in order to insure a specific type of property for the insured. (2) The insured can select the appropriate policy limit for the property. (3) Floaters are typically written on an all risk basis which means all direct physical losses to property are covered, except for specially excluded losses. (4) Most floaters cover the property anywhere in the world, however, fine arts are usually covered only in theUnited States.

The following is a brief explanation of the inland marine personal articles floater.

An inland marine personal articles floater is used to insure valuable personal property that often requires broader coverage than that provided by an insured's homeowner policy, due to the various exclusions and limitations on homeowners coverages .

The personal articles floater can be used to insure the following nine optional classes of personal property.

Jewelry

Most personal jewelry can be included on a floater, however, jewelry is given more consideration than other personal items so should be carefully selected before scheduling.

Furs

Fur coats, personal fur items consisting mostly of fur, garments trimmed with fur and even imitation fur can be included on a floater. Each item must be separately listed with a specific amount of insurance.

Fine Arts

Fine arts can include private collections of paintings, antique furniture, rare books, glasses, ornament knickknacks, and manuscripts. Each item must also be listed in the schedule with a specific amount of insurance. Fine arts are insured on a valued basis which means if a loss occurs, payment would be made for the amount of insurance stated in the schedule for that particular item .

Cameras

Most photographic equipment can be included in this class of property. Each item must be described on a schedule with an amount of insurance. Items usually included are, motion picture recording equipment, projection machines, films, binoculars, and telescopes. Smaller miscellaneous items can sometimes be insured for a total value without scheduling each item.

Musical Instruments

Most personal musical instruments, which includes sound and amplifying equipment, can be listed on a floater. Each item should be listed on a schedule with the requested amount of insurance coverage.

Silverware

Silverware and gold ware can be insured under the personal articles floater. Each item must be listed on a schedule with the amount of insurance.

Stamps and Coin Collections

Valuable stamps and coin collections can be insured under the personal articles floater on either a scheduled basis or on a blanket basis. When the blanket basis is used the amount of insurance would apply to the entire collection.

Golfers Equipment

Most golf equipment can be included on a floater including the insured’s golf clothes. All golfing equipment must be on a schedule with the requested amount of insurance stated.

Renters Coverage Description

The HO-4 renters policy is a combination of property and liability coverages . The HO-4 policy is tailored to meet the needs of a tenant. The following is a basic outline of the HO-4 Renters Policy and the endorsements most widely used on the HO-4 policy.

The HO-4 policy provides coverage for a tenant of a single family residence or a tenant of an apartment. The policy focuses on loss to personal property and loss to additions. Coverage for legal liability is also included. The HO-4 policy does not include coverage for the dwelling and other structures because a tenant does not have an insurable interest in the building. However, the HO-4 policy provides coverage for building additions and alterations made by the tenant. Personal Property is covered against direct physical loss caused by a specified peril. In addition to the coverages provided under Section I of the policy, additional coverages are included for debris removal, fire department service charges, loss assessment charges, reasonable repair charges, and property removal charges. Payment is also made for loss involving credit cards, forgery, and counterfeit money. The additional coverages are included to provide additional protection in the event of certain peril losses. All additional coverages are subject to certain limitations and conditions.

Personal Property

This is the primary limit of insurance coverage for the H0-4 policy. Coverage C provides worldwide coverage for personal property of the insured. Special limits apply to some types of property, and some types of property are excluded from coverage. The insured selects the limit of coverage which is determined by the value of personal property owned.

Loss of Use

Coverage D applies if a peril insured against under Coverage C makes the residence unsuitable for living. Payment would be made for expenses incurred to live elsewhere following the loss. The limit for Coverage D is 20% of Coverage C.

Personal Liability

Section II of the renters policy provides liability coverage for personal loss exposures. The insuring agreement under Coverage E provides liability coverage if a claim is made or suit is brought against an insured because of bodily injury or property damage. Coverage is provided for the named insured and members of the insured's household who are relatives. Personal Liability has a basic limit of $100,000 per occurrence. The insured may increase this limit for an additional premium. In addition to the basic limit, Coverage E also provides additional coverage for expenses such as defense cost, expenses incurred providing first aid to others, damage to property of others and loss assessment charges.

Medical Payments

This coverage will pay the necessary medical expense for bodily injury of others. Coverage applies to accidents that occur on the insured premises or any location when caused by action of the insured. This coverage has a basic limit of $1,000 per person. The insured may select higher limits for an additional premium.

Endorsements

Inflation Guard Endorsement

When this endorsement is added to the policy it increases the limit of Coverage C and D. The insured selects the percentage of increase for the year and limits are automatically increased at certain dates throughout the year.

Earthquake Coverage Endorsement

Earthquake coverage is excluded under Section I of the policy. Adding this endorsement removes the exclusion and adds earthquake coverage which is subject to a deductible for each coverage under Section I.

Scheduled Personal Property

The scheduled personal property endorsement is used to provide coverage for risk of direct loss for such items as jewelry, furs, cameras, musical instruments, silverware, golfer's equipment, fine arts, postage stamps and rare coins. Scheduled property can be insured for any amount the insured requires.

Increase Special Limits

Certain types of personal property under Coverage C has special limits of liability. Adding this endorsement increases the special limit.

Building Additions/Alterations

The policy provides additional coverage for building improvements or installations, made or acquired at the tenants expense. The basic limit is 10% of Coverage C limit, adding this endorsement increases the basic limit.

Water Bed Liability

This endorsement provides coverage for liability arising out of an insured's ownership or use of a water bed on the residence premises.

Deductible

The renter's policy has a standard deductible of $500. The minimum deductible varies by carrier and may be increased to reduce the premium.

Personal Umbrella Coverages

The Personal Umbrella Policy was designed to provide coverage in the event of a catastrophic claim, lawsuit, or judgment. Personal umbrella policies provide excess liability insurance over the insured's basic primary policies, such as the homeowners, personal auto and boaters policies. Coverage is provided on a worldwide basis for the entire family. Umbrella policies pay only after the limits of the underlying primary policies are exhausted. Coverage is usually broader and applies to some loss exposures not covered by the primary policies. A typical umbrella policy will provide coverage on a single limit occurrence basis. Coverage is provided for bodily injury and property damage liability. Defense costs are also covered , normally in addition to the liability limit, and sometimes included as a part of the total limit.

A self insured retention (deductible) must be met when certain losses are covered under the umbrella policy but not covered under the primary policy. The insurer requires the insured to carry certain minimum amounts of liability insurance on primary policies. Coverage under a personal umbrella policy can vary depending on the insurer since there is not a standard personal umbrella policy form.

Personal Injury Liability

Under the personal umbrella policy, the personal injury liability coverage is usually broadly defined to include coverage for bodily injury, sickness, disease, disability, shock, mental anguish, and mental injury. Coverage is also included for false arrest and imprisonment, wrongful entry or eviction, malicious prosecution or humiliation, libel, slander, defamation of character or invasion of privacy, and even assault and battery, when not intentionally committed or directed by an insured.

Property Damage Liability

Under the personal umbrella policy, property damage liability is usually defined as injury or destruction of tangible property, which includes the loss of use of the property.

Self Insured Retention

The self insured retention is the amount of the loss the insured must pay before the umbrella policy would be required to respond. The retention would only apply when a loss is excluded from coverage under the primary policy, but not excluded under the umbrella policy.

Required Underlying Limits

This is a requirement of the insurer, it requires the insured to have certain minimum amounts of primary liability insurance before the umbrella policy can be written. Usually the required limits are $250,000 per person and $500,000 per occurrence on bodily injury liability and $50,000 for property damage liability under the auto policy. The personal liability insurance limits must be at least $100,000 under the homeowners policy. Insured's that have a watercraft liability exposure are usually required to carry at least $300,000 in liability coverage. However, these required underlying limits can very among insurers.

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