UMBRELLA Insurance Policy
Umbrella Insurance is extra liability insurance coverage that goes beyond the limits of the insured's home, auto or boat insurance. It provides an additional layer of security to those who are at risk for being sued for damages to other people's property or injuries caused to others in an accident. It also protects against libel, vandalism, slander and invasion of privacy.
An umbrella insurance policy is very helpful when the insurance owner is sued and the dollar limit of the original policy has been exhausted. The added coverage provided by liability insurance is most useful to individuals who own multiple assets or high-priced property, and are at significant risk for being sued.
The annual premium is typically less than $200/year for every $1 million of coverage, although people whose lifestyles are believed to expose them to greater risk typically have to pay more.
The premium for an umbrella insurance policy may also be less expensive if the policy is purchased from the same insurer that provided the original auto, home or boat insurance. The policyholder who wants to add umbrella insurance policy is usually required to have a base insurance coverage of $150,000 to $250,000 for auto insurance and $250,000 to $300,000 for homeowners insurance.