An Umbrella policy is extra insurance that provides protection beyond existing limits and coverages of other policies. This insurance can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations.
Is it worth having an umbrella policy?
Umbrella insurance is worth it if the value of your assets exceeds your auto or home liability insurance limits. Umbrella policies are relatively inexpensive so they are worth the investment if you have significant assets you’re looking to protect from costly liability claims.
What does this insurance usually cover?
This is a type of personal liability insurance that covers claims in excess of regular homeowners, auto, or watercraft policy coverage. Umbrella insurance coverage covers injury to others or damage to their possessions; it doesn’t protect the policyholder’s property.
How does this insurance work and how much does it cost?
Umbrella coverage picks up where the liability limits of your homeowners and auto policies leave off. It’s usually sold in increments of $1 million. Cost for this type of insurance is roughly $150 to $350 a year for the first $1 million of coverage and about $100 per million of coverage above that.