Personal Excess Liability Insurance

What Does Personal Excess Liability Insurance Mean?

Personal excess liability insurance offers additional coverage beyond the limits of an existing liability insurance policy. It covers amounts that exceed the coverage provided by the primary liability policy.

Insuranceopedia Explains Personal Excess Liability Insurance

Personal excess liability insurance is often compared to umbrella insurance. While both offer coverage beyond the limits of a liability policy, personal excess liability insurance does not provide the broader protection that umbrella insurance does. Choosing the right limits on your primary policy affects how much excess coverage you might need, and our breakdown of how much liability insurance you need walks through the trade-offs.

For example, if you injure another party in a car accident and the total damage amounts to $12,000, and your liability coverage has a limit of $10,000, your excess liability insurance would cover the remaining $2,000. People who buy excess liability usually already suspect their base limits won’t hold up in a bigger claim, and our piece on whether liability car insurance is enough goes deeper into that question.