Umbrella insurance is what provides extra coverage to those who might be involved in a pending lawsuit dealing with injuries or damage for which they are at fault. Should a lawsuit potentially incur costs beyond the normal liability limits on the policyholder’s existing insurance, then umbrella insurance can be of great help.
Most umbrella policies provide extended coverage of $1 million or more. This kind of policy provides help in the form of coverage for paying for a lawyer for example. Umbrella policies can also give liability coverage for lawsuits that are not under the policyholder’s home or car insurance purview. For instance, an umbrella policy would assist a person if he or she were sued for an accident while they were operating a rental car.
A person who has much in the way of assets that could be lost in a lawsuit is the perfect candidate for an umbrella insurance policy. Generally, this kind of policy costs approximately $200 for the first $1 million in coverage, with additional charges of $100 for each extra $1 million of coverage.
As is the case with all kinds of insurance, umbrella insurance is a method for achieving great peace of mind and a sense of security. With coverage you can be assured that you be protected from financial harm if you find yourself in litigation or you could be faced with the prospect of thousands of dollars being paid out of pocket to an injured person for wages lost and medical bills incurred. Umbrella insurance is what protects you from these sorts of scenarios, assuming that the policy is kept current and premiums are paid.
It’s important to keep in mind that you should purchase a significant amount of umbrella insurance at the onset because you cannot buy more coverage once the policy is in effect.