Umbrella Insurance was once thought to be only necessary for the wealthy, however, with the cost of litigation at an all-time high, everyone could use the sort of protection offered by Umbrella Insurance. Umbrella Insurance is a type of liability insurance in which the policy holder has protected their future assets and income beyond the limits stated in their primary policy. It is referred to as “Umbrella” Insurance because of the way it covers a policy holder more broadly than standard policies. The holder of an Umbrella Insurance policy broadens the coverage on all of their current policies. Thus, if you carry an Umbrella Insurance policy that is worth $500,000, and your auto insurance has a limit of $50,000, and your homeowners insurance has a limit of $100,000, your auto insurance limit can now be considered to have a limit of $550,000 and your homeowners insurance can now be considered to have a limit of $600,000.
Be Covered In More Situations With An Umbrella Insurance Policy
Umbrella Insurance policies may also cover you in situations of false arrest, invasion of privacy, libel, and various other situations that would not be covered by typical homeowners insurance and auto insurance policies. Obtaining an Umbrella Insurance policy is an excellent way of laying down a safety net for you and your family. Talk to your insurance agent about an Umbrella Insurance policy for you and your family.