Sometimes there are costly gaps in your policy. Sometimes a disaster can stress your policy to its limits. For those occasions, it’s smart to get umbrella coverage in order to cover any additional costs you may accrue.
How it Works
Umbrella policies cover damage claims that you, your dependents or even your pets may cause. Your umbrella policy starts paying out after the liability insurance in your homeowners or auto policy runs out. For example, if you have a home insurance policy with liability coverage of $300,000, the umbrella policy will pay claims above $300,000, up to the limit you select, such as $1 million. Or, if your liability limit on your car insurance policy is $250,000 of bodily injury protection per person and $500,000 per accident, your umbrella policy would cover expenses beyond those amounts, up to the policy’s limit.
A personal liability umbrella insurance policy can give you the added liability protection without a large added cost. Additional liability insurance is often inexpensive, especially compared to the added coverage one gains. Furthermore, liability insurance covers one’s non-business activities anywhere in the world. Having the added protection of a liability umbrella policy is coverage no one should go without.