Yes, there is such a thing as an “umbrella policy” in insurance. This policy acts just like it sounds, it covers your underlying policies to protect you financially when dealing with a liability claim. This policy kicks in once your underlying policy limits are exhausted. For example, if your auto liability limit is $500,000 and you get into an accident that exceeds the $500,000 your umbrella would drop down and pay for the additional expenses. Umbrella policies typically run by the millions, starting as low as one million and are only eligible on auto policies that carry at least a single limit of $500,000. Premiums can vary depending on driving record, number of drivers in household, amount of homes etc. Typically a premium is between $150-$200 a year per million. The term “umbrella” in plain words, shields the insured’s assets more broadly then their primary policies would.
Not only does this policy drop down once the primary policy limits are exhausted but it also provides coverage to claims that may be excluded. False arrest, libel, slander and civil suits are prime examples. It used to be that only the wealthy needed or wanted this policy. However, now that anyone can sue for any reason, at any time, an umbrella adds the extra protection you might need. It is important to know that people can be declined from this type of policy and that is why it is important to work with your insurance agent to find out if you are a fit candidate for this extra insurance.
Don’t be caught out in the rain, get an umbrella policy so you aren’t trapped in financial pain!
Always feel free to visit our site http://www.cisforyou.com/ for a free quote on your auto or home!
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