Umbrella insurance is a type of personal liability insurance that covers claims in excess of your regular homeowners, auto, or boat insurance. It provides an additional layer of security to those who are at risk for being sued for damages to other people’s property or injuries caused to others in an accident. It also protects against libel, vandalism, slander, and invasion of privacy.
1. How does Umbrella Insurance work?
Umbrella insurance begins to fulfill claims once you’ve exhausted the coverage in your original policy. If the damages surpass what your primary insurance covers, your umbrella policy will cover the remaining balance up to the policy limit.
2. Who should get Umbrella Insurance?
Want More Financial Tips?
Anyone who has significant assets or is at risk of being sued can benefit from an umbrella policy. It’s particularly helpful for landlords, business owners, and those who are regularly involved in activities that could trigger lawsuits.
3. What are the benefits of Umbrella Insurance?
Besides providing extra liability coverage, umbrella insurance can also pay for your legal defense costs and attorney fees associated with claims against you. Moreover, unlike auto and homeowners insurance, an umbrella policy can cover you anywhere in the world.
4. What is not covered by Umbrella Insurance?
Umbrella insurance does not cover your own injuries or damages to your personal belongings. It also doesn’t cover intentional or criminal acts or losses in your business or professional activities.
5. How much cost the Umbrella Insurance?
Costs for umbrella insurance can vary. Typically, you can get $1 million in coverage for about $150 to $300 per year. However, the price will depend on your underlying liability limits, the number of properties and vehicles you have, and your location.