Umbrella Insurance

As the name brings to mind, umbrella insurance wraps around your other policies and offers you additional coverage when your standard insurance comes to an end. Essentially, it begins where your other policies end, as well as dealing with things that might not be covered by other insurances.

Envision this situation: you are in an auto collision, the other vehicle is totaled and the driver suffers severe injuries. You are sued for $500,000. Your normal accident protection insurance only pays up to $250,000 in damages. An umbrella policy can cover the additional $250,000 left by your auto policy.

The same thing can happen in your home. Perhaps someone slips and falls in your kitchen and is severly injured. You are responsible for their hospital expenses and the costs are high, adding up to much more than your standard homeowner’s coverage will pay. Once more, the umbrella insurance policy saves the day by picking up where your other insurance leaves off.

Another use for this type of policy could be expenses connected with accidents on the premises of rental property, false arrest and other injustices.

Most umbrella policies begin at $1 million and may be increased by million dollar add-ons, contingent upon whether you meet the requirements. If you are considering taking out an umbrella policy, take the time to survey your life. Do you own a home or investment properties? Do you have other valuable property, such as a boat, motorcycle or RV? Do you have an investment portfolio? If you answered yes to any of these questions, consider the value of your assets and contrast it with the insurance coverage that you currently have. This can help you to determine if an umbrella policy is necessary.