Personal Umbrella Insurance
What Does Umbrella Insurance Cover?
Umbrella insurance protects you in liability situations where your home, auto or boat policies come up short. The extra coverage protects you in two ways—and here they are:
Increases the dollar limit of liability coverage for primary policies: Say your auto insurance liability coverage limit is $300,000. If you purchase an umbrella policy of $1 million and cause an accident that exceeds your $300,000 auto insurance liability limit, your umbrella insurance can cover the remainder, up to a total of $1.3 million. That’s pretty huge.
Covers claims excluded by primary policies: Most liability policies don’t cover damage claims resulting from false arrest, libel, slander or defamation of character. Should one of these nightmare situations occur, your umbrella policy can help you tackle the financial burden. Another huge bonus.
Why Should I Buy Umbrella Insurance?
Umbrella insurance is surprisingly inexpensive, especially considering everything it can do. It would be a shame to get stuck with massive bills if the unexpected strikes, when it could have all been covered at a fraction of the cost. Liability incidents come in all shapes and sizes, so being ready for everything from the itty to the not so bitty is key for your financial future.