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Insurance
Umbrella Liability Policies |
Like it or not, we live in
a litigious society. No one is immune to lawsuits. You can be sued for serving hot coffee
in your home or making a slanderous statement about one of your neighbors. The list goes
on and on.
Why You Need It
While your auto and homeowner insurance provide you with a small amount of liability
protection, they generally fall short of the coverage you'll need if involved in a major
lawsuit. Sure, your insurance company will pay it's legal share. But you'll have to come
up with the rest -- a situation likely to drain your financial assets. That alone, is
enough reason to have umbrella insurance.
Umbrella policies are often misunderstood. Despite the general myths, they are:
- not just for the wealthy.
- not that expensive.
- not that hard to set up.
Umbrella liability policies
essentially pick up where your other insurance leaves off. So if you're sued for $1
million dollars because of a car accident, your auto insurance will cover the first
$300,000 of liability. Your umbrella policy will cover the remaining $700,000. Without
this type of policy, you would be liable.
What It Covers
So what does an umbrella policy cover? Many additional items not found in normal home or
automobile policies, including:
- Extended personal liability.
- Personal injury.
- Defamation of character.
- Libel.
- Negligence.
- Plagiarism.
- Slander.
- Unlawful eviction.
- Extended property damage.
- Defense costs.
What It Cost
Surprisingly, umbrella policies are fairly inexpensive. They depend on a number of factors
such as age, gender, family status, the number of cars or homes you own, and whether you
own a small business -- anything that shows the amount of risk you present.
Premiums normally range from $200 to $400 a year depending on the amount and type of
coverage you select. If you have all your insurance policies with the same insurance
company, you should get a better discount on your coverage.
Most insurance companies require you to carry the maximum liability coverage for both your
home and automobile policies in order to qualify for an umbrella liability policy.
Insurance Calculators:
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whole life policy?
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universal policy? |
