Umbrella Insurance Introduction
Umbrella insurance provides additional liability protection. It is often used to protect insured individuals from potential lawsuits and the enormous claims that can result. In other words, when an existing insurance policy’s liability reaches its limit, umbrella insurance can take over from there.
How it Works
Umbrella insurance provides an extra level of coverage beyond the normal limits of standard coverage. It can work with insurance that covers your home, your car, your boat and more. It can also help when facing accusations of libel or slander, false arrest and even from legal action.
This type of policy can be a financial help for policyholders who own property they rent out. It protects the landlord from many adverse actions, like slip and fall claims, dog attacks or from the result of an injury if a person were to visit a rental unit and be hurt. It can also benefit those who have an auto accident in which property is damaged. Basically, umbrella insurance provides an extra layer of liability protection. It allows the policyholder to be fully protected from huge out-of-pocket payments.
Generally, coverage is available in levels beginning at 1 million dollars. Larger limits are possible for those with expensive assets and large wealth. The more assets you have to protect, the more useful you’ll find this coverage. Umbrella insurance can provide great coverage for a relatively inexpensive price.