This is the kind of insurance that covers what a homeowner and auto insurance policy will not. It also protects the policyholder from a higher level of liability than normal insurance coverage. Umbrella insurance also includes coverage that most other insurance policies do not even have. Consequently, this kind of a policy strengthens the policyholder’s financial protection should a lawsuit be filed or should the policyholder be exposed to various liabilities.
Many can certainly make good use of this insurance, but especially those with significant assets should seriously consider obtaining it. For example, if someone files a civil lawsuit and then is awarded damages, assets are normally in jeopardy. This extra added protection can be used to pay the damages awarded, thereby protecting any personal or business assets.
Those who are more affluent often seek the extraordinary coverage that these insurance policies provide. Keep in mind that an umbrella policy is not intended to be used instead of traditional homeowner or automobile insurance coverage. In the end, the purchase of good umbrella insurance normally means that the policyholder will enjoy the highest levels of coverage on homeowner and auto insurance in existence.
Both individuals and businesses are free to obtain umbrella insurance policies. The typical umbrella policy will usually extend the limits on a liability policy from 1 to 5 million dollars. Any home or business owner would certainly appreciate the great peace of mind in knowing that any catastrophic event is handled financially with this additional coverage.
A qualified insurance professional can guide the individual or business owner in figuring out the best and most appropriate levels of liability coverage needed. One’s net worth is certainly a big consideration, but not the only one. It all boils down to protecting your hard-earned assets, whether they be cars, homes, or a built-up nest egg.