The purpose of insurance is to protect yourself when disaster strikes, even if you are at fault for the damage. That’s why home and auto policies often include liability, should you be found responsible for the accident that involves your cars or occurs in your home. However, liability may not provide adequate protection. Do you need umbrella insurance for further protection?
Frequently Asked Questions About Umbrella Insurance
Question: What does umbrella cover?
Answer: The umbrella policy provides additional coverage in liability situations, helping people who have been sued following an auto accident or something happening on his/her property. The coverage won’t kick in until after you exceed your current liability limits.
Question: Doesn’t my liability coverage include these costs?
Answer: In most cases an accident will be covered by your current policy. However, should you be sued then you may not have enough liability to cover the full costs. At this stage, a lack of additional coverage can lead to financial problems. The additional policy may not be used much in your lifetime, but if you are in a situation that requires more than your current liability coverage you will be glad to carry it.
Question: How much should I purchase?
Answer: That depends on a number of factors and will require a conversation with your insurance agent for an exact number. Remember, the coverage may be needed if the injured party is out of work or severely injured. Typically, liability coverage is in the 200,000 to 350,000 range. An average umbrella policy covers one million or more, up to five or ten million in some cases.
Question: Do I buy separate policies for my home and car?
Answer: No. One policy can cover both your home and vehicle. If you have any questions about the policy please contact our office today. One of our agents will be glad to assist you.