With so many varieties of insurance often needed by individuals and businesses, it is often a great challenge to sift through all the information to discover what type of coverage would be most appropriate for your individual situation. Many insurance professional suggest obtaining an umbrella policy, particularly when a business is the focus of coverage.
An umbrella policy is an option for insurance coverage that provides additional liability coverage beyond the norms of a typical policy. Before you can obtain an umbrella policy, you must first have a regular insurance policy in effect.
Umbrella insurance is what gives extra coverage to those who might be involved in litigation as a result of injuries or damage for which they are determined to be at fault. Should a lawsuit happen, costs beyond the normal liability limits on one’s present insurance can be often overwhelming- this is where umbrella insurance can be of great assistance.
Most umbrella policies offer extended coverage up to $1 million and often even more. This kind of insurance provides help in the form of coverage, for example, for hiring an attorney. Umbrella policies also often provide liability coverage for lawsuits that are not under the policyholder’s home or car insurance policy. For example, an umbrella policy would help an individual if he were the object of litigation after an accident while driving a rental car.
A person who is more affluent, in the way of assets, who could be subject to potential losses well exceeding most standards, would be a perfect candidate for an umbrella insurance policy. Usually, this policy type costs approximately $200 for the first $1 million in coverage, with additional charges of $100 for each extra $1 million of added coverage.
As with most kinds of insurance, umbrella insurance is a method for achieving the priceless peace of mind and security of knowing you are protected. Umbrella insurance coverage protects you from all kinds of tragic scenarios, assuming that the policy is kept paid and up to date.
Remember to purchase a significant amount of umbrella insurance sooner rather than later as you cannot buy more coverage once the policy is activated.