There are so many varieties of insurance available for purchase it can often be a bit overwhelming. One of the more overarching types is umbrella insurance. Although the title may seem familiar, few people actually understand what its purpose is. The following is a quick guide to how this kind of insurance works and who it can best help.
Umbrella insurance is a type of coverage that one might need to look into if a hedge against extra liability is necessary. Normally it is there to protect a policyholder from potential lawsuits and from the consequences of big claims. Obtaining this coverage can help protect one’s financial future.
Basically, umbrella insurance provides an extra level of coverage beyond what normal coverage for your home, car and boat will pay. It can also protect you from various claims made against you, like in the situation of slander, libel, or even false arrest. It can assist you when you as a landlord face legal action from renters you, for example. It is timed to kick in when the liability coverage on your normal insurance has been exhausted.
Umbrella insurance can be a financial boon to those who own rental units. It protects a property owner from actions like claims for falling on a property, a dog bite or an injury that occurs while one visits a unit in the building. People who are involved in an auto accident can also greatly benefit as well. So can an individual who might be held responsible for the injury of another due to an accident or another scenario. In a nutshell, it is yet another way for a policyholder to protect him or herself from out-of-pocket costs.
Choices for coverage are normally available in amounts beginning at around one million dollars. Be aware that there are even larger limits available for those needing extra added protection. This kind of coverage provides for its policyholders through the provision of asset protection, peace of mind and a relatively low cost for the coverage.