If you have significant assets and want to be able to sleep at night, a personal umbrella policy may be right for you.
Personal umbrella insurance provides liability coverage over and above the limits of your auto or homeowners policy. So, if your liability coverage isn’t enough to cover the damages of an accident you cause or an accident on your property, a personal umbrella insurance policy kicks in right where your other underlying limits have been exhausted. An umbrella policy can protect you when your automobile or homeowners insurance isn’t enough.
In most cases, personal umbrella policies are available in million dollar increments, from $1 to $5 million. The premiums for such extended coverage are relatively reasonable. For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.
Most insurers will provide a discount on umbrella policies if your auto/homeowners insurance is also with that company.
In our litigious world, a personal umbrella policy will be there when you need the coverage and will provide peace of mind even if it is never needed.
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