Umbrella Insurance Policies
When you are looking at auto or homeowners insurance, you might, in considering the worst-case scenario, decide to increase your policy limits significantly, especially if you are a person of wealth or means. Lawsuits for the smallest trip or fall, or "fender bender" in your car can easily tap out the average $50,000 to $100,000 auto policy and then you will be stuck paying the rest out of pocket. Obviously the higher your policy limits the more you will pay every month in premiums, but how much is too much?
The fact is that there is a point of diminishing returns when it comes to paying more to increase your auto or homeowners insurance maximums. At a certain point, rather than relying on those policies to protect you, you should consider a solid umbrella policy in order to provide you or your family with the protection you need.
A Lot of Protection for One Low Price
Umbrella insurance policies provide protection above and beyond what your homeowners, renters, condo, or auto insurance policies do and they do it for a very low price. You can receive a $1,000,000 policy for just a few hundred dollars per year. The low expense of an umbrella policy is directly tied to the extremely low likelihood that it will ever be needed or used. Your regular homeowners or auto policy will cover most damages and accidents, and if it doesn't, that is the only time when an umbrella policy would kick in to provide you with protection. You can use an umbrella policy to pay for a legal defense, or medical/funereal expenses for someone who is injured on your property or by your driving once your regular insurance policy has paid out its maximum.
The best time and way to buy an umbrella insurance policy is when you are considering other Offers from the same company. The multiple policy discount will probably apply and you can rake in additional savings. Then you can sleep comfortably at night knowing that you are covered from all but the most extreme of accidents or issues that might take place.
If you aren't sure if an umbrella policy is right for you, speak with an agent about it. They will take a look at your current insurance coverage and help you to determine if you could benefit from additional coverage as provided by an umbrella policy or by simply increasing your limits on your current policy.