Umbrella Policy Coverage for a Rainy Day
An Umbrella Policy is an additional amount of coverage that assists your existing liability insurance. If you ever face a major lawsuit, then this coverage will become useful. If the limit on your auto, home or boat insurance is reached before you’ve paid a claim, then umbrella coverage picks up where your primary policy ended.
Umbrella insurance is basically a safety net for injuries or damage caused by you. If you’re sued, and your primary liability coverage becomes exhausted, then your umbrella coverage takes over.
Umbrella coverage starts with a minimum of $1 million. There is an option to increase policy limits, but $1 million is usually sufficient. You can also purchase less coverage if desired.
Umbrella Insurance in Action
Imagine you’re in a high speed auto accident that’s your fault. The driver of the other vehicle spends 8 weeks in the hospital and needs physical therapy. Your automobile liability limit is $300,000, but the damages you owe exceed $300,000. Your auto policy pays the $300,000, but $600,000 remains. You’re completely covered because of your $1 million umbrella policy.
You risk losing your home, business, savings, and everything if somebody is hurt because of your negligence. There’s no reason to risk these assets when umbrella coverage is available.
You need to speak with an insurance agent for details on the cost of an umbrella insurance policy. You cost will depend on several things, such as how much coverage you want.