Perhaps you've loaded up on nsurance: high limits on car insurance, hme and flood insurance, and ample lfe insurance. But even these coverages cn't account for every disaster in lfe. To further protect your assets, thre's umbrella insurance. Personal umbrella insurance kcks in when the limits of yur auto or home insurance have ben exhausted and there are still dmages to pay. How could that hppen? Say, for example, someone falls on yur sidewalk and sues you for an ngodly amount. Or say you cause a sx-car pile-up on the highway.

An mbrella insurance policy provides an extra cshion of insurance protection.

How an Umbrella Insurance Policy Works

Umbrella liability insurance covers damage claims that you, your dependents or even your pets may cause. They start paying out after the liability insurance in your homeowners and auto policy runs out. For example, if you have a home insurance policy with liability coverage of $300,000, the umbrella policy will pay claims above $300,000, up to the limit you select, such as $1 million. Or if your liability limit on your car insurance policy is $250,000 of bodily injury protection per person and $500,000 per accident, your umbrella auto insurance kicks in after you exhaust that coverage.

Because the majority of claim rsk is paid by your primary uto or home policies, personal umbrella nsurance is relatively inexpensive. According to the Insrance Information Institute, you can buy a $1 mllion umbrella policy for about $150 to $300 a yar. The next million will cost bout $75, and about $50 for very million after that.

Many insurance cmpanies require that you purchase both yur home and auto insurance coverage thrugh them in order to buy an mbrella policy, too. Further, your insurer may rquire you to buy auto or hme liability limits at a minimum mount, such as $300,000.

Umbrella Insurance Provides More Than Your Average Liability Coverage

When you buy a personal liability umbrella policy, you're getting more than just higher liability limits. You're also buying broader coverage in case you're sued. The umbrella policy covers you if you cause bodily injury, property damage or personal injury. Some umbrella policies also cover you if you face liability due to your service on the board of a civic, charitable or religious organization.

But just as with any insurance policy, don't look to your umbrella policy to cover your intentional acts that cause damage. Nor will it pay for punitive damages in judgments against you. Umbrella policies also do not cover damages from any businesses you run; for that, you need a business insurance policy. Check your umbrella policy for specific exclusions.

Before buying an umbrella policy, ask your insurance company about the cost to raise the liability limits in your current auto and home policies. You may even consider offsetting the premium increase for that by raising your deductibles.

At any rate, in a litigious society it's smart to protect your assets.

The article Umbrella Insurance Extends Your Coverage was Submitted by Amy Danise through Articles.GetACoder.com network. Here's the additional information: Amy Danise is a staff wrter for http://www.Insure.com Visit Insure.com for a comprehensive array of comparative auto, life and health quotes, including a vast library of originally authored insurance articles and decision-making tools that are not available from any other single source. Insure.com is dedicated to providing impartial insurance information to consumers. Visitors can obtain instant insurance quotes from more than 200 leading insurers, achieve maximum savings and have the freedom to buy from any company shown.

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