What Does Personal Excess Liability Insurance Mean?
Personal excess liability insurance provides extra coverage for another liability insurance policy that a policyholder already owns. It pays for amounts that surpass the limit of the first liability policy.
Insuranceopedia Explains Personal Excess Liability Insurance
Personal excess liability insurance is often equated with umbrella insurance. While both provide coverage beyond the liability policy's limit, personal excess liability insurance does not provide the broader protection that umbrella insurance affords.
To illustrate, suppose that you injure another party in a vehicular accident and the total amount of damage is $12,000. If your liability coverage has a limit of $10,000, your excess liability insurance will pay the additional $2,000.