Umbrella Insurance For Greater Coverage

Umbrella Insurance For Greater Coverage



Umbrella Insurance For Greater Coverage
When the​ amount of​ a​ claim against you​ exceeds the​ coverage provided by your home or​ auto insurance policy,​ you​ are saddled with the​ prospect of​ settling this excess liability on​ your own .​
Your insurance company will not cushion you​ against this contingency .​
However,​ there is​ a​ way out .​
To overcome this eventuality,​ you​ can obtain an​ excess liability policy,​ or​ an​ umbrella policy.
This policy will give you​ the​ required cushion against any claim exceeding the​ amount covered by your normal insurance policy .​
For example,​ suppose your auto insurance policy covers claims of​ accidental pedestrian injury up to​ an​ amount of​ $20000 .​
If an​ accident does occur,​ and a​ claim of​ $50000 dollars is​ adjudicated against you,​ the​ insurance company will only pay the​ $20000 agreed upon,​ and you​ will have to​ pay the​ balance $30000 out of​ you​ personal funds .​
If you​ do not have the​ cash or​ any other liquid asset,​ then your home,​ or​ some other fixed assets could be at​ stake .​
You may even be reduced to​ a​ state of​ bankruptcy .​
This is​ where an​ umbrella policy can help you​ .​
An umbrella policy will take care of​ the​ excess amount of​ $30000 dollars that you​ would have had to​ pay from you​ own funds.
The umbrella policy expands the​ coverage offered by your home or​ auto policy .​
You can purchase this policy for coverage of​ up to​ five million dollars .​
Moreover,​ the​ premium is​ very low and you​ may have to​ pay just $300 to​ $400 a​ year for this coverage.
When the​ amount of​ a​ claim against you​ exceeds the​ coverage provided by your home or​ auto insurance policy,​ you​ are saddled with the​ prospect of​ settling this excess liability on​ your own .​
Your insurance company will not cushion you​ against this contingency .​
However,​ there is​ a​ way out .​
To overcome this eventuality,​ you​ can take an​ excess liability policy,​ or​ an​ umbrella policy.
This policy will give you​ the​ required cushion against any claim exceeding the​ amount covered by your normal insurance policy .​
For example,​ suppose your auto insurance policy covers claims of​ accidental pedestrian injury up to​ an​ amount of​ $20000 .​
If an​ accident does occur,​ and a​ claim of​ $50000 dollars is​ adjudicated against you,​ the​ insurance company will only pay the​ $20000 agreed upon,​ and you​ will have to​ pay the​ balance $30000 out of​ you​ personal funds .​
If you​ do not have the​ cash or​ any other liquid asset,​ then your home,​ or​ some other fixed assets could be at​ stake .​
You may even be reduced to​ a​ state of​ bankruptcy .​
This is​ where an​ umbrella policy can help you​ .​
An umbrella policy will take care of​ the​ excess amount of​ $30000 dollars that you​ would have had to​ pay from you​ own funds.
Further,​ many companies will not offer you​ the​ umbrella policy unless you​ have your home or​ auto insured with them .​
They may also require you​ to​ maintain a​ certain level of​ liability on​ your home or​ auto insurance.
The umbrella policy does not only cover your cars and homes,​ but also offers personal injury protection which may include false arrest,​ false imprisonment,​ malicious prosecution,​ defamation,​ invasion of​ privacy,​ wrongful entry or​ eviction .​
The terms may vary according to​ each company,​ and from one state to​ another.
The umbrella policy is​ an​ excellent way to​ protect yourself against expenses for claims exceeding the​ coverage provided by your regular insurance policy .​
It can be bought for a​ very low annual premium,​ and proves very helpful in​ protecting your personal assets from lawsuits and legal action.




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