What is an Umbrella Insurance Policy?
“Umbrella” or “excess coverage” insurance is an extension of your home and auto insurance policies. Most often, an insurer will only provide umbrella coverage if both your home and autos are insured with that company. The policy kicks in after all of your homeowner or auto policy coverage has been exhausted. In other words, it protects you against those truly extraordinary losses for which you are at fault and for which your home or auto coverage are simply not enough.
Umbrella policies protect you against liability above the coverage of your regular policy. We are in an increasingly litigious society. Homeowners, auto, and watercraft policies have a limit on liability insurance. If an unfortunate accident should happen that is your fault, do you have enough liability insurance from your current policies to cover your costs for negligence? No one can predict who will be in the other car before they have an accident, or the extent of injuries, or how much a judge may award the injured person in a lawsuit. Umbrella insurance is not just for the wealthy – it is a needed protection for every policyholder who wishes to protect his family.
For the amount of coverage provided, umbrella policies can be some of the cheapest coverage (per premium dollar) available to you. If your insurance agent is not talking to you about these matters, perhaps it is time to find one who will create insurance coverage designed specifically for YOUR family.
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