What Is An Umbrella Policy Insurance - Homeowners, auto, and watercraft policies have a limit on liability insurance. If an unfortunate accident should happen that is your fault, do you have enough liability to cover your costs for negligence? The term umbrella is designed to give one added liability protection above and beyond the limits
Depending on the company, one can add an additional 1-5 million in liability protection. This protection is designed to “kick-in” when the liability on other current policies has been exhausted.
The umbrella is the portion of a homeowners or auto policy that pays for expenses such as the injured persons medical bills, rehabilitative therapy, and lost wages due to the negligence of the at fault person. The liability portion of an insurance policy also covers a legal defense representative if the negligence would happen to land the at fault person in the court room. After adding up all of the medical expenses for the injured and the legal fees of the negligent person, the standard liability in one’s homeowners or auto policy is often not enough.
Almost every state has financial responsibility laws that will hold drivers accountable for bodily injury and property damage resulting from car accidents and the at fault driver could be sued for the damage.
Personal assets from the at fault driver could be seized resulting from a lawsuit. Similar laws are also in force for home and watercraft owners.
There is good news. A personal liability umbrella insurance policy can give one added liability protection without a large added cost. Additional liability coverage is often inexpensive, especially compared to the added coverage one gains. Furthermore, liability covers one’s non-business activities anywhere in the world.By: Mary Smith
Add our Facebook page to receive updates and participate in new tools and features. It's a great way to stay connected with all the latest news.
Receive daily bite-sized updates by following us on Twitter. Receive Tweet-sized 140-character updates on your mobile phone device or PC.
Subscribe to our daily RSS feed to get the latest national news stories. We offer a feed for every topic including business, entertainment, health, politics, science & technology, travel and more.