Many people are perfect candidates to receive the extra-added protection afforded by good umbrella insurance. This protection covers the policyholder and their family beyond the policy limits of their existing car or homeowners’ insurance (or both). Depending on the coverage details of the particular umbrella policy, boats and motorcycles can also be included.
Good umbrella insurance is perfect for those who have accumulated significant assets that need to be safeguarded from the possible consequences of a lawsuit. In order to meet the requirements necessary for qualification, one must already have the maximum available limits on existing policies that will then be complemented by the umbrella coverage. After this point, one can then increase that liability coverage to the tune of 1 million to 10 million dollars.
Umbrella coverage can provide protection from accidents and injuries that may happen either on or off of your property. For instance, most homeowner insurance will not provide coverage for bodily injury resulting from your dog biting a stranger. Having good umbrella coverage, you’ll know you’re fully protected. Other examples of covered events include property damage, slander, false arrest, invasion of privacy, to name a few.
When activated due to a covered event, umbrella coverage can also kick in to help with obtaining proper legal assistance.
The minimum level of umbrella insurance one can obtain in coverage is $1 million. From there it increases in steps of $1 million each. The maximum coverage available from most insurance providers is usually $10 million. Keep in mind that, for a dollar a day more, you can add $1 million of coverage.
Umbrella insurance can make a difference between solvency and bankruptcy in many instances and comes with discounts offered by insurance providers if both the home and vehicles are insured. If you own significant assets, you’ll definitely be well-served in protecting them with good umbrella coverage.