Umbrella Insurance
A policy known as “umbrella insurance” is the kind that provides an extra level of coverage for the policyholder. An example would be an extra $1 million of coverage for your auto insurance policy and, as a matter of fact, this tends to be the most common option for umbrella coverage. Another common example would be a boost to one’s normal homeowners’ liability coverage. Many would make the false assumption that a million dollars’ of coverage is excessive and that an umbrella policy is unnecessary. However, one can be quickly disabused of that idea should one be sued for an injury in one’s home or auto.
This kind of coverage is perfect for those who want protection from the high costs of lawsuits or from types of liabilities that are not covered by their other insurance. Additionally, legal fees that are often related to lawsuits can add up greatly and umbrella policies can help to cover that which results from false arrest, slander, and invasion of privacy, for example.
Again, this kind of coverage is useful to protect one against catastrophic financial losses, expensive legal costs, and the holes in other insurance policies. Lawsuits can exceed standard policy limits by hundreds of thousands of dollars, sometimes very quickly, and the peace of mind provided by this coverage is a big advantage that is offered by umbrella policies.