What is Umbrella Coverage and how can it Protect Me?

Well, that is an excellent question. Umbrella insurance is one of the lesser known types of insurance coverages. In many situations, it may also be one of the most important form of coverage you can have. You should familiarize yourself with umbrella coverage and decided if it is right for you.

What is Umbrella Coverage?

Umbrella coverage is an absolute necessity if you have any valuable assets like a home to protect. Umbrella coverage kicks in when you reach the limit if your liability coverage on either your home or auto policy. Essentially, you will be protected in worst cast scenarios. The most common type of umbrella policy covers you for up to $ 1 million, however, much larger policies are available. Additionally, umbrella coverage protects you from many situations in which your liability coverage would not.

Additional Protections

Umbrella insurance will protect you from injury claims, damage to property, in personal liability situations, and in the event of certain lawsuits. Protection in the event of out of the ordinary lawsuits is one of the largest benefits of umbrella insurance. For example, with an umbrella insurance policy, you will be protected if you are sued for slander and libel, or if you fall victim to malicious prosecution or false arrest.

The Ultimate Coverage

Holding an umbrella policy with uninsured motorist coverage gives you the highest level of protection. These policies will typically cost around an additional $200 annually, but if you or a member of your family are catastrophically injured by an uninsured motorist, you will be protected. It isn’t uncommon for major medical bills to exceed $1 million. Would your current insurance policy fully cover you in such an eventuality? Probably not. If indeed that is the case, consider shopping for an umbrella insurance policy.