You may be wondering why you need an umbrella policy when you already have insurance on your home and auto, but as your income and assets increase, you need more protection for them. Umbrella insurance is a form of coverage that supplements all other policies. The main objective of this policy is to safeguard your personal assets from any unforeseen event, including a tragic accident caused by you.
Umbrella insurance is considered one of the best ways to cover liabilities that can be unusually large and exceed basic policy limits.
Umbrella Insurance Policy Coverage
An umbrella policy provides additional excess liability above the expectations of your underlying policy. By excess liability, we mean coverage from one to five million dollars can be provided by the insurance company. Excess liability awards compensation for the following.
Cost of legal defense for a covered loss, such as attorneys’ fees and associated court costs.
Additional protection for your primary auto policy and auto-related liabilities
Personal liability compensation for your property on or off the premises.
Worldwide coverage for car use abroad, no matter where you go.
Compensation for non-commercial liabilities associated with personal injury, including libel, slander, false arrest, or wrongful eviction.
Coverage for third party claims regarding personal injury, damage to property, members of your family, or peril on your property.
Cost of Coverage of an Umbrella Policy
Umbrella policy coverage typically starts from $150 to $200 for a $1 million policy. Your coverage depends on the amount of the premium. The amount of the premium increases if you decide to increase your coverage. However, increasing the policy limit to $2 million and getting twice the coverage won’t double your premium cost.
Importance of general policy
Your home, car, retirement accounts, investments, as well as your normal savings and checking accounts along with your future income are considered valuable assets. If you are sued for a large amount of money and do not have enough liability insurance or a general compensation policy, then all of your assets will be exposed. For this reason, you should consider purchasing an umbrella insurance policy, as it helps prevent the possibility of financial damage due to an unforeseen accident or a single misstep.
Where can I get a policy?
You can purchase general insurance coverage from various insurance companies and agents around you. But one of the best ways to get umbrella coverage is through a credible, independent agent or independent broker.
