Endorsements & Optional CoveragesQuestion 448 of 474
The self-insured retention under a personal umbrella policy applies to a claim that is:
a.Paid in full within the underlying auto limit
b.Excluded by the umbrella and by the home policy
c.Covered by both the umbrella and the auto policy
d.Covered by the umbrella but not underlying
Explanation
An umbrella asks the insured to keep stated underlying home and auto limits, and when a claim is covered by both, the underlying policy pays first and the umbrella sits above it. The retention is the insured's own layer, paid out of pocket, on the narrower set of claims the umbrella covers but the underlying policies do not. A claim the umbrella itself excludes never reaches the retention at all.
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