When you got too much to protect and your primary policy is not going to be enough to cover it, then you need a policy on a policy that takes over once the primary policy finishes, just like an umbrella. For example, a home insurance policy provides the direct liability of a loss. Once the amount of money in the homeowner’s liability is exhausted, the umbrella insurance kicks in to cover the remaining liability. It can protect you from the kind of financial devastation that sometimes arises if someone sues you for property damage, injury, and associated legal defense costs.
Umbrella insurance is extra liability insurance coverage that goes beyond the limits of the insured’s home, auto, or watercraft insurance. It provides an additional layer of security to those at risk of being sued for damages to other people’s property or injuries caused to others in an accident.
Umbrella insurance is an inexpensive option for the kind of protection you can hardly afford not to have. It can cost as little as 20% of your current home, auto, or watercraft insurance for one to five million dollars’ worth of additional liability insurance.
Umbrella insurance is not just for the wealthy it can benefit almost anyone. Accidents do not affect just one income range of people, so why have your property unprotected. If you have an apartment, home, or condo, just one event can cause your financial ruin. An umbrella insurance policy can help prevent you from paying out of pocket for another person’s medical, legal bills, along with the cost of pain and suffering if you’re found responsible.
Umbrella insurance is relatively cheap compared to other types of insurance at a cost per million. The Insurance Information Institute states most $1 million policies cost $150 to $300 per year. You can expect an increase of about $75 more per year per $1 million in coverage. Insurance companies’ umbrella liability policies start at $1 million in coverage, with $5 to $10 million increase limits available.
Your home, auto, and boat insurance do not cover slander, Libel, False arrest, detention, imprisonment, malicious prosecution, shock/mental anguish, legal defense costs, defamation of character, or invasion of privacy. Hence, the “umbrella” is a broader coverage policy. For those risks not covered in your primary policy, an umbrella will cover the gaps in coverage.
The actual purchase of umbrella insurance is a simple process and does not take much work on your part. Most insurance would like or demand that an umbrella policy can only be provided to their current policyholders. Still, each state will have different guidelines, and because some states do not offer homeowners insurance, these rules are not enforced.
Even the most cautious person with the finest intentions can end up responsible for a massive judgment from a personal liability lawsuit. While you’re doubtful about finding yourself in this situation, it’s still wise to protect yourself against such a devastating financial loss. Umbrella insurance can help you do that
Additional discounts and savings for bundling your home and auto. I can not promise a number.
Additional discounts and savings for bundling you home and auto. I can not promise a number.