Understanding Umbrella Policies

When you have an insurance policy, you will want to choose an option that is best for you, your family, and the possessions. Make sure to contact us and we can advise you on the right insurance policy to invest in. We can also advise you if an umbrella policy can be beneficial.

If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for your attorney’s fees, up to a limit set in the policy. However, you may want to have an extra layer of liability protection. That is what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander. For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Since the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. If you are unsure how much is covered with the umbrella policy, make sure to contact us and we can advise you on the options you have. No matter if you have a question or concern about auto, life, health, or home owner’s insurance, it is recommended to talk to us so we can recommend what the best policies are for you and your family.