Protect Your Assets – Umbrella Insurance Policies Expand Auto and Home Liability

Most homeowners have a homeowner’s insurance policy, as it is a requirement when financing a mortgage with a bank. Homeowner’s insurance, also known as hazard insurance, protects against the loss of a home to fire or other designated perils and includes coverage of home contents, personal liability coverage, and loss of use.

Automobile liability insurance covers you when you are involved in an accident. Most policies provide up to a maximum of $500,000 in coverage, where an umbrella policy can increase that limit by an extra $1 million or more, depending on the amount of financial protection you want. That way by adding umbrella insurance, you are likely to have the necessary limits to cover you in a serious accident. An umbrella expands coverage in the event a legal claim is filed against you from any involved parties.

An umbrella policy can cover claims for which you have no insurance as well as providing an additional amount over your underlying automobile and homeowner’ s liability limits. Most people buy automobile and homeowners insurance from the same insurance provider because they receive a multiple coverage discount. Therefore, umbrella coverage would cover any liability for the home and automobile as well as any automobiles, boats, recreational vehicles, and other items that fall under the umbrella. The primary purpose of an umbrella insurance policy, then, is to protect your personal assets from liability claims.

For the most recent data available, the National Highway Traffic Safety Administration reported that vehicle crashes were the 11th leading cause of death for the general population in the United States in 2009. For those aged 4, and all ages 11 through 27, motor vehicle crashes continue to be the leading cause of death. With over 5.5 million car crashes annually, there were more than 30 million injuries with nearly two million people requiring hospitalization for injuries they sustained.

If the number of vehicle crashes were not enough to have you consider adding umbrella coverage, certain aspects of your home may also warrant added liability coverage. Owning a home with a swimming pool or trampoline, for example, is a good reason to consider an umbrella policy. If an accident should occur, extra liability coverage will help cover court costs and any damages up to the liability limit of the policy.

Without umbrella insurance coverage, you would be personally responsible for paying off any damages of an awarded personal injury and other related costs included in a liability claim. Just one unfortunate event can result in a catastrophic financial outcome for you and your family.

Available in increments of $1 million, umbrella insurance can protect your family from financial ruin. Your insurance agent or broker will be more than happy to discuss umbrella policy alternatives with you given your personal situation. One incident can pay for the cost of the premium many times over. Despite the fact that umbrella policies are quite affordable, if you are cash strapped, you may want to consider increasing your deductible on home and auto insurance to give you the cash necessary to protect you and your family from a successful liabil

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An Overview Of Umbrella Insurance Policy

Jack London had said that the objectionable must be eliminated and the unexpected is to be foreseen. However, often we find ourselves in objectionable and unforeseen events. Such events can cause great damages and personal injuries. In such situations, a usual insurance policy would be not sufficient for adequate compensation. Let alone a single policy. Even multiple insurance can be insufficient in providing compensation. Such insufficiency has given rise to the emergence of umbrella insurance and umbrella insurance policies.

What is an Umbrella Policy? Essentially, an umbrella insurance plan covers you the same way as an umbrella. Rain and accidental damages are both unforeseen and devastating. Umbrella policy insurance would provide for a suitable compensation. Even if the other insurances are not equipped enough to give you legal and financial security, your umbrella insurance policy would be enough.

Basically, the entire concept of umbrella product is an extension of the usual excess insurance. Excess insurance is given by insurers to people, when the provided cover is not suitable or valid. However, umbrella policy is more applicable. It will work well, even in the presence of other valid insurance policies. Umbrella policy gives you the additional and enhanced compensation for damages.

Simply put, an umbrella product would add to the regular benefits, which your ordinary insurance policy would give you. Let’s consider this. In the event of an accident, you could be alleged to be responsible. In such an event, you would need proper legal assistance for defense against the allegations. Normally, good legal assistance would be costly and your insurance policy would not provide for the expenses. Your umbrella policy insurance would come to the rescue. A good umbrella policy would help you settle your legal fees and costs. It would provide for good assistance of lawyers and advocates.

It is not just the case for accidents. Umbrella policy insurance would also help matters out in events of personal and financial damages. For instance, you may be held responsible for some loss or damage. In such a situation, your business is under threat of facing losses. Your umbrella insurance policy would provide for the legal provisions, against the personal injuries and damages.

While umbrella policy can be costly, it is worth it. The additional coverage of liability claims is going to be a safety measure for you and your business. Moreover, if you win the legal lawsuits, it would be the other party, who would cough up the expenses.

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