All You Need to Know About an Umbrella Insurance Policy

You may wonder why you need an umbrella insurance policy when you already have insurance for your home and car, but as you increase income and assets, you need more protection for them. . Umbrella is a form of insurance coverage that complements all other policies. The main objective of this policy is to protect your personal property from any unforeseen event, including a tragic accident caused by you.

Umbrella insurance is considered one of the best ways to cover liabilities that may be abnormally large and exceed the threshold of the base policy.

Coverage by Umbrella Insurance Policy

An umbrella policy provides more liability than your original policy would expect. By additional liability we mean that coverage ranging from one to five million dollars can be provided by the insurance company. Additional liability compensates for the following.

Legal defense costs for covered damages such as attorney’s fees and related court costs.
Additional protection for your primary auto policy and auto-related liabilities
Personal Liability Compensation for you or closed premises.
Worldwide coverage for foreign use of cars, no matter where you go.
Compensation against nonbusiness involving personal injury liabilities, including defamation, slander, false arrest or wrongful removal.
Coverage for claims by others about personal injury, property damage, your family members or threats to your property.

Coverage cost of an umbrella policy

Coverage for the umbrella policy typically starts at $ 150 to $ 200 for a $ 1 million policy. Your coverage depends on the premium amount. If you decide to increase your coverage then the premium amount increases. But, the policy limit has been raised to $ 2 million and getting double coverage will not double your premium cost.

Importance of umbrella policy

Examining accounts with your home, car, retirement accounts, investments, as well as your general savings and your future income are considered valuable assets. If you sue for a large amount and you do not have enough liability insurance or an umbrella policy to compensate, all of your assets will be exposed. For this reason, you should consider purchasing an umbrella insurance policy as it helps you to prevent the possibility of financial damage due to unexpected accident or single accident.

Where can I get a policy?

You can purchase umbrella insurance coverage from various insurance companies and agents around you. But the best way to get umbrella coverage is by an independent and reliable agent or independent broker.