One of the most uncertain things in life is uncertainty. Your dog bites a neighbor’s child. Your teenage driver may hit a cyclist. Guests will fall down the stairs. Commuting on worn tires in the raining morning can lead to many car accidents. You may be liable to others for damages – injuries, property damage, emotional pain, lost wages and more.
Well, you have insurance. But wait a minute, what if your policy includes $ 300,000 in compensation and you’re awarded $ 1 million in compensation? The remaining 700,000 dollars to pay. How will you insure?
If you have umbrella insurance and your policies cover this event, an extra $ 700,000 will come from your policies. If not, it will come from assets you now own, such as your home and savings, and future assets such as your salary or inheritance.
The fact is that only one serious accident and the resulting litigation can put everything you have – as well as ownership – at risk. And there is only one umbrella policy to help protect it.
Here are a few things you should know about umbrella insurance:
Personal umbrella policies usually provide one to five million U.S. dollars in coverage. Think about your net worth when choosing insurance coverage – you may be sued for everything you have.
Umbrella policy is not a separate policy. Your insurance company will usually require you to meet certain qualifications, such as having a certain level of liability insurance policy to purchase umbrella insurance.
Even if you have umbrella insurance, your car or home insurance is your first line of defense. For example, if you are responsible for a $ 2 million car accident and your car insurance includes $ 500,000, then your car insurance will include $ 500,000. Your policy includes the remaining $ 1.5 million, assuming that your policy covers the incident and that you have purchased so much insurance. If you are responsible for the $ 250,000 incidental to your property and your homeowner insured for $ 300,000, then your umbrella insurance is not needed.
If you guarantee a motorbike, ATV, golf cart, snowmobile, RV, or ship, the umbrella policy may provide additional liability insurance policies as well. Be sure to check with your agent about the coverage of these models.
A single umbrella policy usually includes all family members and who are your family members.
In essence, umbrella policies provide you with over-liability insurance that goes beyond your other policies. If you have a serious accident, you need it.
Umbrella insurance can also give you compensation if other policies do not apply. For example, driving or chartering in a foreign country.