You may wonder why you need umbrella insurance if you already have home and car insurance, but as your income and assets increase, you need more protection. Umbrella insurance is a form of cover that complements all other policies. The main purpose of this policy is to protect your personal property against unforeseen events, 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 base policy limits.
Umbrella insurance coverage
An umbrella policy offers an additional deductible over and above the expectations of your basic policy. By excess liability, we mean that the insurance company can provide coverage from one to five million dollars. The deductible provides compensation for the following.
Legal defense costs for a covered loss, such as attorney’s fees and associated court costs.
Extra protection for your primary car policy and car-related obligations
Personal liability compensation for your on or off site.
Worldwide coverage for foreign use of cars, wherever you go.
Compensation for non-business activities related to personal injury liabilities, including libel, defamation, false arrest or wrongful eviction.
Coverage for claims from others related to personal injury, property damage, members of your family or hazards on your property.
Coverage costs of an umbrella policy
Coverage for the umbrella policy generally starts from $150 to $200 for a $1 million policy. Your cover depends on the premium amount. The premium amount increases if you decide to increase your cover. But raising the policy limit to $2 million and getting twice as much coverage won’t double your premium costs.
Meaning of Umbrella Policy
Your home, car, retirement accounts, investments, as well as your regular savings and checking accounts, along with your future income, are considered valuable assets. If you are sued for a large amount of money and you do not have adequate liability insurance or an umbrella insurance policy for damages, all of your assets will be exposed. For this reason, you should consider purchasing umbrella insurance as it will help you avoid the possibility of financial loss due to an unforeseen accident or a single misstep.
Where can I get a policy?
You can purchase the umbrella insurance coverage from various insurance companies and agents around you. But one of the best ways to get umbrella coverage is through an independent and credible agent or independent broker.
Everything you need to know about umbrella insurance
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