UMBRELLA Insurance Policy
If you cause an accident or are liable in someone getting hurt, what would you do if your auto or homeowner’s insurance was not enough to pay the claim? You can be sure that the injured party will sue you for damages if they have unpaid medical bills, property damage or lost time from work. In some accident cases, these lawsuits can add up to hundreds of thousands of dollars. One way to ensure you would be protected from costly lawsuits such as these is to purchase an umbrella insurance policy.
An umbrella policy pays for liability damages in excess of the liability coverage provided by your home or auto insurance. For example, if you have a car accident that is your fault, your car insurance liability will pay the injured party up to its liability limits. If the injured party is not completely compensated, the umbrella policy will step in to pay the remainder of the liability claim, up to its policy limits. Most umbrella policies offer additional liability coverage of at least one million dollars or more.
Even if your assets do not total more than a million dollars, it is a good idea for any family to get umbrella coverage of at least a million dollars. The coverage is typically inexpensive and can save you so much down the road in the event of a lawsuit.
It is very easy to qualify for the purchase of an umbrella policy. Most insurance companies require that you have your car insurance with them before they will issue an umbrella policy. You will also have to answer some questions about your life, such as what kind of work you do and what kind of interests or hobbies you have. The application is really quite simple, and can usually be quoted and issued all in the same day.
No matter what your current financial situation is, purchasing an umbrella insurance policy should be high on your to-do list. This simple step could save you a lifetime of income in the event of an accident.