Personal Umbrella Policies
Sometimes the coverage that is afforded to you by a basic homeowners or automobile policy just isn’t enough. This is because everybody is different and everybody has different coverage needs. When this occurs, it is time to purchase a personal umbrella policy.
An umbrella policy is an insurance policy that goes on top of your existing insurance policy, and adds additional coverage limits to it. For example, your homeowners policy may only cover you for $25,000 worth of your personal property, or $500,000 worth of liability, but you know that you have/ need a lot more than that. This would be the time to purchase an umbrella policy to cover your existing exposure.
You don’t have to be a millionaire to be sued like one. Million-dollar judgments against individuals for negligence are still relatively rare. However, receiving a lawsuit with a million-dollar demand is more common. If you receive such a court summons and you have only $100,000 of coverage, you may lose a lot of sleep.
Umbrella policies offer inexpensive “peace of mind” for most types of negligence claims. Automobile accidents are probably the most common source of serious claims. This policy supplements your basic automobile liability with extra million-dollar layers of protection. It also covers other types of catastrophic claims such as a neighbor’s child drowning in your pool or the delivery man being seriously injured by falling over your child’s toys.