Protect Your Important Assets with Umbrella Insurance
Umbrella insurance policies are also known as excess liability policies and are considered an important part of insurance coverage for anyone with even a modest number of financial assets. Many insurance agents routinely advise that everyone should carry an umbrella policy, regardless of their income or assets. What exactly is umbrella insurance and why is it so important?
An umbrella policy covers excess liability, or coverage that exceeds the amount of liability insurance that your automobile or homeowner’s insurance provides. If your auto policy has a maximum liability amount of $500,000 and your homeowner’s insurance has a maximum liability of $300,000, an umbrella policy covers any liability claims that exceed those limits. The umbrella policy covers you against any excess liability up to the policy’s limit (often $1 million), in addition to the amount of liability paid through your auto or homeowner’s insurance.
Some of the reasons to consider an umbrella policy:
- You drive a car
- You own an RV, boat or snowmobile
- You own a swimming pool
- You employ domestic help, including babysitters
- You could be sued for slander, libel or invasion of privacy
- You own a rental property
The best place to shop for your individual umbrella policy needs is with your independent insurance agent, who will get quotes from the insurance company that carries your current homeowner’s and auto insurance to search for bundle deals. The agent can review your current and future assets and coordinate the policies to make sure that you have the right amount of insurance and there are no gaps in coverage. As your earning power and assets change, it is also important to have your agent periodically review and adjust your coverage accordingly.
As your assets and income increase, you have more to protect. An umbrella policy adds an additional layer of coverage and can help provide security and peace of mind.