The 411 on Umbrella Insurance Coverage
Umbrella coverage is how one can obtain the protection of liability protection over and above the policy limits of standard auto or homeowners insurance. If your existing liability coverage won’t likely fully provide in time of need for someone’s injury damage claims, when you’re at fault, whether due to a motor vehicle crash or some kind of an accident in your home, this is how good umbrella insurance coverage can help in averting a potential financial disaster.
Who Needs It?
In a departure from what most would believe, a person does not need to be extraordinarily affluent to enjoy the benefits of an umbrella insurance policy. Simply owning a home and being the breadwinner is enough to validate purchasing this added protection. You might one day fall asleep while driving and consequently cause a crash with another car or, perhaps, you may see a friend trip and fall off that step leading to your door and then break his or her ankle. Whatever the case may be, without adequate coverage everything you own and all your monetary assets could therefore be in jeopardy. In most cases the usual auto or homeowners insurance will compensate for the initial $300,000 of expenses incurred. The obvious problem is that you will be liable for any dollar amount that exceeds the policy limit.
How Umbrella Coverage Can Help
In addition to what is mentioned above, quality umbrella insurance coverage will provide protection for the gaps left behind by one’s current homeowners’ or auto insurance coverage. The following are some instances in which Umbrella Coverage can immensely help:
• Slander & Defamation
• Malicious Prosecution
• False arrest & imprisonment
• Mental Anguish
If you face a lawsuit, you will no doubt need to come up with substantial piles cash for legal costs. This is true even if you win the lawsuit! However, when carrying an umbrella policy, the provider of the policyholder can help in the appointment of a legal team on your behalf along with compensation for such costs as court expenses and for legal representation as well. If one is found to be guilty and there is a judgment made against you for a substantial sum, umbrella coverage will help protect you with compensation for judgments that exceed your standard coverage.
How it Works
Umbrella policies come in million dollar increments. Depending on one’s history, the first million dollars of umbrella coverage will usually equal a $300 annual premium payment. Each additional $1 million of coverage will cost another $100 or thereabouts.
In the flash of a moment, when you’re driving down the road carefree and fancy free, you can end up in a collision that is devastating not just to you and others but to your hard-earned assets. Also, (in a blink of an eye), someone can injure themselves on your property and set off a cascade of untold damages that effect your financial well-being and future! Obtaining good umbrella insurance coverage can be the answer to your needs. Speak with your insurance professional today for more details.