Glossary
Taxes & Insurance
Umbrella Insurance
A liability policy that sits above a landlord's primary general liability coverage, extending protection once the primary policy's limits are exhausted. Most commercial leases authorize only standard, primary-level coverage in the CAM pool, making umbrella premiums one of the more frequently improper insurance pass-throughs.
Firm impact
Because umbrella coverage protects the landlord's broader liability exposure, not the property alone, its premium is one of the clearest insurance overcharge patterns your firm can document. The finding requires only the lease's insurance authorization language and the insurance certificate showing the coverage type billed.
How this gets abused
A landlord's CAM reconciliation includes a $14,000 line item for "excess liability coverage" alongside the general liability premium, but the lease authorizes only standard commercial general liability insurance in the CAM pool. The umbrella premium is billed every year with no disclosure that it sits above the base policy.
Practitioner note
Request the insurance certificate or declarations page and identify every coverage type listed, not just the total premium. If umbrella or excess liability coverage appears without explicit lease authorization, it's a candidate for CAMAudit's Insurance Overcharge rule.
FAQ
Questions about umbrella insurance
What is the difference between umbrella insurance and general liability insurance?
General liability is the primary policy covering standard claims up to its limit. Umbrella insurance provides additional coverage above that limit, protecting the policyholder's broader risk once the primary policy is used up.
Does CAMAudit flag umbrella insurance premiums in CAM?
Yes. CAMAudit's Insurance Overcharge rule classifies each insurance line item against the coverage types the lease permits, and umbrella or excess liability coverage without explicit authorization is flagged as an overcharge.
You know the term. Now check the math.
Get started to deliver white-label CAM audit reports under your firm brand.