Umbrella coverage is designed to provide the highest level of coverage and is designed to supplement existing coverage. With a simple umbrella policy, your assets may not be properly protected. Umbrella coverage can provide you with the level of protection you need. If you suffer a major loss, your personal assets may be at risk of being garnished if someone is liable.
Umbrella Policy At Work
You are worth millions and drive an expensive, high-end car. You have at least $1 million in protection as a part of the umbrella policy. If there was an accident, you can be sued and held liable for any damages. If the damages exceed a certain amount, you have to be prepared to pay out-of-pocket costs. Your wages can be garnished if this incident happens if there aren’t any assets to go after. If you have an umbrella policy in place, any additional expenses are covered, which protects your wages and assets. For several hundred dollars a year, this protection is available.
What Is An Umbrella Policy?
Umbrella insurance is considered to be a form of liability insurance. Major claims or lawsuits prevent assets from being seized in the future. There are umbrella insurance policies for homeowner, auto and boat policies. An umbrella policy offers additional coverage above the designated amount for any given plan. The plan kicks in additional coverage after the initial coverage has handled the initial portion of the expenses. For example, if the policy offers $300,000 in coverage and the total expenses exceeds $400,000, then an umbrella policy would cover everything else above that amount. If you had to go to court to handle legal expenses, any wages lost could be recovered using the umbrella policy.
Umbrella liability coverage provides increased limits above the insurance limits provided in the individual policies. Umbrella policies can be chosen to cover boat, car and homeownership. The added protection limits the out-of-pockets expenses you would be accountable for if found liable for something. It also protects the dependents if included in the policy.