The Personal Excess Liability (PEL) policy (sometimes called an Umbrella Policy) covers you and your family by paying covered claims that exceeds the liability limits of your auto or homeowners’ policy. So with PEL coverage, you have the benefit of an additional layer of coverage to protect you financially.
Debbie and I continue to be amazed at the percentage of people we quote for auto and homeowners that do not carry this important coverage. PEL policies are not just for high net worth families. They are a critical part of risk transfer for everyone. That’s why we recommend this comprehensive and affordable protection to all of our clients.
Consider this scenario: You’re sued for $1 million after an auto accident or an incident on your property. But your insurance only covers up to $500,000 in damages. So who is responsible for the other $500,000 if you’re ordered to pay it? Legally you are! So you would need to have a PEL policy, in force before the event that caused the judgment, if you want to transfer the risk to the insurance carrier.
There are significant variations in policy language between the carriers along with differing requirements for underlying liability limits on your primary policies. We can work with you to gain an understanding of your needs and then match you with a PEL carrier that can best meet your needs. If you have questions about your PEL insurance call us at (515) 528-2377. As your Trusted Choice independent agent we can help you get the coverage you may need.