In a personal umbrella policy, what is the term for the amount paid by the insured for certain losses not covered under the primary coverage?

The term used in a personal umbrella policy for the amount paid by the insured for certain losses that are not covered under the primary coverage is self-insured retention. This amount represents the portion of a loss that the policyholder is responsible for before the umbrella policy kicks in to provide coverage. In essence, it acts as a deductible that must be met by the insured before the umbrella policy begins to pay for additional liability exposure above the primary policy limits.

Self-insured retention is particularly relevant in the context of umbrella policies because these policies typically provide coverage beyond the limits of existing liability policies, such as homeowners or auto insurance. By having a self-insured retention amount, the insurer is ensuring that the policyholder retains some level of risk, which can promote responsible behavior and discourage frivolous claims.

The other terms mentioned do not accurately reflect this context: stop-loss typically refers to the point at which an insurance carrier will begin to cover losses that exceed a certain threshold; coinsurance usually involves shared coverage between an insurer and the insured, especially concerning property insurance; and participation requirement is not a standard insurance term linked to the concept of losses paid out by the insured in the context of umbrella policies.