Good Umbrella Insurance, Customer Friendly Coverage
Most will likely enjoy a fairly substantial level of liability insurance with either their homeowners or renters insurance plan and with their car insurance policy as well. But the amounts of liability offered in such plans will sometimes not be nearly enough in cases such as where one is found to be at fault for the serious injury of a visitor or friend or if there is an unusually large amount of property damage, again for which the policyholder is deemed responsible. For these reasons, it can be invaluable to have the additional protections of good umbrella coverage on top of the auto, home and other kinds of liability coverage. In short, an umbrella insurance policy gives you needed supplemental liability protections that go well beyond the norm.
An umbrella insurance plan is a kind of protection that allows for extra (or supplemental) liability coverage. It is engineered to activate and protect you when your other liability coverage limits are exceeded.
An umbrella insurance plan generally will best help people who have built up significant assets that they wish to protect. For instance, say you own a rather expensive home and many valuable possessions or if you enjoy significant financial assets, such as extra property or precious metals and the like, this is where an umbrella policy will be most beneficial to the policyholder as it can save him or her from having to liquidate all those assets in order to pay for a large judgment that comes down against him or her.
How It Functions
An umbrella plan is designed to supplement any existing liability policies you may have. Keep in mind that coverage is only initiated when your liability limits on other policies have been reached. For instance, if you were to be deemed at fault in an auto accident that results in the serious injury of another party and they end up with $1 million in medical expenses for which you are liable, but your existing auto policy only has a $500,000 limit, then this is where the umbrella policy kicks in to cover the difference, in this the extra $500,000 not covered by your standard car insurance policy.
Umbrella policies are generally universal in what they cover, although each can have various minor differences. For example, a commercial umbrella plan will be designed differently and offer other kinds of protection than one might find with a personal umbrella plan. There is also a kind of umbrella policy, known as an “excess policy,” which can be more restrictive in regards to when it is activated and what it will cover, as opposed to a more standard umbrella policy.
The big plus of good umbrella insurance is that it provides the policyholder with excess liability coverage on top of any existing policies. Happily, the premiums of umbrella policies can be quite inexpensive, relatively speaking, especially when one ponders the surprising level of coverage these policies can afford.