I wanted to introduce the concept of an umbrella when it comes to insurance. You may have heard of the term before, but not known what it meant or if it referred to the Travelers umbrella.
An umbrella is additional liability coverage that sits "over top" of your primary liability on your home or renters' and auto insurance. It usually comes in one-million dollar increments up to $5m. The point of an umbrella is to have more protection for current and future assets should there be a lawsuit against you.
Your primary auto and homeowners'/renters' policies have "Personal Liability" or primary liability limits anywhere from $100,000 to $1,000,000. (We recommend nothing lower than $500k) The umbrella would sit directly on top of that, effectively extending the amount of insurance available in case of a lawsuit.
The need for an umbrella typically rises as you have more assets to protect and greater ways to put them at risk (i.e. teenage drivers, boats, etc...), but it's always a good idea because the cost is not great compared to the protection given. Lawsuits can lead to a judgement that will garnish future wages. So even if you're just renting an apartment now and have one car, don't think for a second that's all you have to lose. $200 now for a million dollar umbrella is worth it considering what you could lose down the road.
If you have questions please contact me for more information.
I didn't know much about this kind of insurance. You have shared an excellent post and rich content about umbrella insurance. I have taken up a general liability insurance for my company and will do consider to have this policy too in near future.
ReplyDelete"Commercial Insurance", thanks for your kind words. Please visit us again in the near future at our new website www.personalinsuranceanswers.com
ReplyDeleteSame great content, but our own platform. And don't hesitate to contact anyone of us if you have any follow up questions.
Thanks,
Dan