| At some point, you have probably heard of umbrella | | | | The coverage is cheap. It is possible to obtain 1 |
| insurance, but have no idea what it is. Well, first off, | | | | million dollars worth of excess liability for as little as |
| it does not cover the umbrella you protect yourself | | | | $120 dollars. The more cars and homes you have, the |
| from the rain. It is a figure of speech. An umbrella | | | | higher the price for the insurance, but the cost is still |
| policy is designed to shield you from almost | | | | low. In addition to your home and cars, liability |
| everything that your home and auto insurance does | | | | associated with any other conveyances you may |
| not, as well as fill in gaps in coverage when the limits | | | | have, such as boats, motorcycles, and other |
| of your regular policy are exhausted. | | | | recreational vehicles, may also qualify for coverage |
| Every day, there are personal lawsuits filed against | | | | under the umbrella, depending on the insurance |
| ordinary citizens, with the reasons ranging from the | | | | company. |
| frivolous to the justified. When and if this happens to | | | | You are probably wondering when the umbrella would |
| you, you need to be prepared. More often than not, | | | | actually come into play. Here is an example: If you |
| people are sued and have no extra protection to | | | | are involved in an auto accident where you crashed |
| block the plaintiff from going after their personal | | | | into a pedestrian who was walking on the sidewalk, |
| assets in the lawsuit. To protect yourself from such | | | | resulting in medical expenses for that person that |
| a quandary, you need to have umbrella insurance. | | | | costed more than what your auto policy covered, |
| An umbrella is often referred to as excess liability. | | | | the umbrella would be used. Or, if that pedestrian |
| This excess liability coverage kicks in when the | | | | then decides to sue you for negligence and seeks |
| underlying limits on your home or auto policy have | | | | punitive damages, your umbrella can be utilized to |
| been exhausted, or if you are sued personally for | | | | cover your legal expenses and to pay any |
| something that neither your home nor your auto | | | | judgements levied against you. |
| insurance covers. Depending on the company, you | | | | It is also important to understand that the excess |
| can purchase anywhere from 1 to 5 million dollars | | | | liability covers you for all sorts of things that have |
| worth of excess coverage, sometimes as high as 10 | | | | nothing to do with your cars or homes. Things such |
| million. | | | | as personal injury protection are covered. This |
| The amount of coverage you select really depends | | | | includes false arrest, false imprisonment, malicious |
| on how much you are worth. If you have 5 million | | | | prosecution, defamation, invasion of privacy, wrongful |
| dollars worth of personal assets, you should get a 5 | | | | entry, or eviction. |
| million dollar umbrella. It is not uncommon for | | | | Also, some umbrella policies provide coverage for you |
| someone to buy a 5 or 10 million dollar umbrella policy | | | | if you are sued in connection with any charitable |
| even if that number far exceeds their net worth, | | | | boards or organizations of which you are a member. |
| because the coverage is so cheap to buy. | | | | You may have to contact your insurance company |
| Most insurance companies will not offer you the | | | | and pay an extra premium for this type of coverage. |
| coverage unless you have both your home and auto | | | | I hope this has helped illuminate to you the |
| already insured with them. Also, the insurer will require | | | | importance of having umbrella insurance. Without it, |
| that you maintain a certain level of liability on the | | | | your personal assets are totally vulnerable in any |
| home and auto policies in order to qualify for the | | | | lawsuit or legal action. Talk to your agent about it and |
| excess policy. Usually, you must maintain at least | | | | ask how much it costs. Even though multi-million dollar |
| $250,000 of bodily injury liability per person, $500,000 | | | | lawsuits are not common, they can happen. So, an |
| per accident, and $100,000 for property damage for | | | | umbrella is probably worth it. |
| your autos, and $500,000 of liability for your home. | | | | |