Umbrella Insurance Policies
When you purchase umbrella insurance, you're buying additional liability insurance to protect you from any large claims. These ordinarily involve claims for injury or damages under auto, homeowners or boat insurance.
Protecting your personal assets:
It only takes a few seconds of distraction while driving to cause a serious motor vehicle collision. You don't know who might be in that other vehicle either. If he or she is a high earner, damages could exceed your maximum auto coverage. A large claim will leave the injured party and their attorney looking to your personal assets for the balance after your liability policy limits are exhausted. That's exactly when your umbrella coverage is triggered and kicks in.
Umbrella coverage is surprisingly affordable. With a good claims history, your first $1 million of coverage should cost about $200. Each additional $1 million will cost about $100 or even less.
Your umbrella coverage might also insure you for other claims that aren't ordinarily covered by your liability insurance like defamation, false arrest, invasion of privacy or malicious prosecution. You're also covered anywhere in the world. A defense attorney is appointed and paid for.
We all face the chances of being responsible for an accident and getting sued, especially if we spend a considerable amount of time on the road. Having a dog in the house or a swimming pool are other reasons for umbrella coverage. For most people, $1 million of umbrella coverage is sufficient. Coverage is so inexpensive that you might even want to go to $2 million. You're better safe than sorry, because after a claim arises, you can't go back and increase your coverage. A few hundred dollars a year is well worth the extra protection that umbrella insurance provides for you and your family.
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