What is Umbrella Liability Insurance? Do I Need Umbrella Insurance?

Umbrella insurance is a personal excess liability insurance policy that protects you above and beyond the limits on your homeowners or condo insurance, car insurance, watercraft or other personal insurance policies. Furthermore, it’s an inexpensive way to protect your financial future or established assets.

What Does Umbrella Liability Insurance Insurance Cover?

Umbrella insurance can protect you from:

  • litigation arising from property damage or injury.
  • Associated legal defense costs if you get sued for damages to other people’s property or injuries.

Who Can Benefit from Umbrella Insurance?

People with established assets that don’t want to lose significant amounts of money in a lawsuit.

Let’s now that you get sued, you could lose any assets you have built up, including investments and all of your savings.

Do I Need Umbrella Insurance?

This days, lawsuits can be found almost everywhere. Lawyers are awarding larger amounts of money than ever.

So, Homeowners, auto, and watercraft policies have a limit on liability insurance. Liability insurance is just the portion of a homeowners or auto policy that pays for expenses.

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Furthermore, the liability portion of an insurance policy also covers a legal defense representative if the negligence would happen to land the at fault person in the court room.

How Much Does Umbrella Insurance Cost?

A personal liability umbrella insurance policy can give you added liability protection without much cost.

This depend on how much umbrella liability coverage you want to purchase. It may cost as little as $100 a year for 1 million dollars of coverage, and would increase depending on how much coverage you have. Paying $100 to $150 in exchange for $1 million of protection is the cheapest million dollars you’ll ever buy.

What Are the Conditions of an Umbrella Policy?

For the umbrella policy to start paying out coverages, a primary liability policy must be in place, and have maxed out on payments.

What Information is Required to Get Umbrella Insurance or Excess Liability?

Below are typical asked questions by the insurance agent when obtaining an umbrella policy.

(1). list all your properties across world and who insures them.

(2). liability limits for the insurance on all your properties

(3). A list of all vehicles or boats and other recreations vehicles you own, and as well their insurance liability limits.

(4). Whether you are a member of a board of directors or non-profit.

The umbrella liability insurance application is making sure to get a full details of your assets and how they are insured to ensure you are getting the right type of coverage you need.