You may wonder why you need an umbrella insurance policy when you already have insurance for your home and car، but as your income and assets grow، you require more protection for them. Umbrella insurance is a form of coverage that supplements all other policies. The main objective of this policy is to protect your personal assets from any unforeseen event، including a tragic accident caused by you.
Umbrella insurance is considered one of the best ways to cover liabilities that can be extremely large and exceed the limits of the basic policy.
Coverage by Umbrella Insurance Policy:
An umbrella policy provides additional excess liability over and above the expectations of your underlying policy. By excess liability، we mean coverage from one to five million dollars can be provided by the insurance company. Excess liability provides compensation for the following.
The cost of legal defense for a covered loss such as attorney’s fees and related court costs.
Additional protection for your primary auto policy and vehicle-related liabilities
Personal liability indemnity for your indoor or outdoor premises.
Worldwide coverage for foreign car use، no matter where you go.
Indemnification against non-business related personal injury liabilities including defamation, defamation, false arrest or wrongful eviction.
Cover for claims by others relating to personal injury، property damage، your family members or hazards to your property.
The cost of coverage of an umbrella policy:
Coverage for an umbrella policy generally starts at $155 to $205 for a $1.1 million policy. Your coverage depends on the premium amount. The premium amount increases if you decide to increase your coverage. But increasing the policy limit to $2.1 million and getting double the coverage amount will not double your premium cost.
Importance of umbrella policy:
Your home، car، retirement accounts، investments، as well as your regular savings and checking accounts along with your future income are considered valuable assets.
If you are sued for a large sum of money and do not have sufficient liability insurance or an umbrella policy for compensation، then all of your assets will be exposed.
For this reason, you should consider purchasing an umbrella insurance policy as it helps you prevent the possibility of financial damage due to an unforeseen accident or a single misstep.
Where can I get a policy?
You can buy umbrella insurance coverage from various insurance companies and agents around you. But one of the best ways to get umbrella coverage is through an independent and trusted agent or broker.