500
The insured has the following liability limits:
Auto: $500,000
Homeowners: $250,000
Personal Umbrella: $2million with $1,000 retention limit.
The insured is liable for $750,000 in a liability loss that would be covered under his homeowners insurance.
How much would the homeowners policy pay?
How much would the umbrella pay?
How much would the insured pay?
What is $250,000 (homeowners)
$500,000 (umbrella)
$0 (insured) Retention only applies for losses excluded on underlying policies.