ISO Rolls Out Industry's First Standardized Personal Umbrella Policy
Personal umbrella policies give the policyholder additional liability coverage of at least $1 million more than the amount provided in homeowners and automobile policies.
New-York City-based ISO's personal umbrella policy is the first standardized policy for excess coverage to be offered for use with personal lines. Consumers, insurance agents and regulators benefit from standardized forms. Standardized language makes it easier for insurance buyers and agents to understand the policy that is being sold and to comparison-shop for price and service.
Regulators do not have to review in detail every policy filed for approval by insurers if the policies are based on a standardized form.
ISO's new policy allows insurers to choose their own deductibles and underlying auto and homeowners coverage-limits requirements. The umbrella policy provides excess coverage at least as broad as the most important coverages offered in the underlying policies. In several areas it offers broader coverage, in excess of a stated deductible. For example, ISO's umbrella policy covers:
- All worldwide losses, including auto;
- Personal injury for named offenses, including libel, slander, false arrest, wrongful entry, and others; and
- Property of others in care, custody or control of the policyholder;
The umbrella policy follows the underlying policies' coverage for watercraft and recreational motor vehicles. But optional endorsements to exclude coverage for designated RVs, autos or watercraft are included.
Uninsured/underinsured motorist coverage is excluded by the umbrella policy, but this coverage can be reinstated through an endorsement in states where such coverage is required.