This policy is designed to add an extra layer of liability protection to your home, auto, motorcycle and boat insurance policies. In the event that you are held liable for another person’s injuries or damages, your existing coverage will kick in. However, what happens when your primary policy’s limit becomes exhausted? Instead of being held liable to pick up the rest of the tab, umbrella insurance can offer additional coverage.
Umbrella insurance can cost less than $200 annually for one million dollars worth of additional coverage. It is extremely affordable for a great deal of extra protection.
Deciding if an umbrella insurance policy is essential may not be easy. Many individuals may assume that their current home and auto policies are enough to cover the worst case scenario. However, this may not always be the case.
There are certain exposures that may make umbrella and excess liability insurance critically important.. These situations include:
- Homes with swimming pools on property
- Homes with a trampoline on property
- Families with multiple drivers – especially inexperienced drivers