Seven Key Features of an Umbrella Insurance Policy

An umbrella insurance policy is a type of liability insurance that provides additional coverage beyond the limits of your existing insurance policies, such as your home insurance or auto insurance. It acts as a safeguard to protect you and your assets in case you are held liable for damages in excess of the coverage provided by your primary insurance policies.

Here are some key features of an umbrella insurance policy:

1. Coverage Limits: Umbrella insurance typically provides coverage in increments of one million dollars or more. For example, you might purchase a policy with coverage limits of $1 million, $2 million, or even more.

2. Broad Coverage: Umbrella insurance can extend the coverage provided by your underlying policies, such as auto, home, or renters insurance. It can also cover liability claims that may not be covered by your primary policies, such as personal injury claims, slander, or libel.

3. Excess Liability: When the liability limits of your primary insurance are exhausted, the umbrella policy kicks in to cover the additional costs, up to the policy's limit.

4. Cost-Effective: Umbrella insurance is relatively cost-effective when compared to the amount of additional coverage it provides. Premiums are often reasonable, considering the potential financial protection it offers.

5. Multiple Scenarios: Umbrella insurance can cover various scenarios, including personal injury claims, property damage claims, and legal fees associated with liability lawsuits.

6. Worldwide Coverage: Umbrella insurance typically provides coverage worldwide, giving you protection wherever you go.

7. Legal Defense: The policy often covers legal defense costs, such as attorney fees and court expenses, even if you are not found liable in the end.

It's important to note that in order to obtain an umbrella insurance policy, you usually need to maintain a minimum level of liability coverage on your primary insurance policies. For example, you might need to maintain a certain level of liability coverage on your auto insurance and home insurance before being eligible for an umbrella policy.

Umbrella insurance is a valuable asset for individuals and families who want to protect their assets and financial well-being in the event of a major liability claim or lawsuit. It provides an extra layer of security and peace of mind, especially for those with substantial assets to protect.

If you are interested in obtaining an umbrella policy, one of our licensed insurance advisors can guide you to making the right decisions on which policy is best for you and your unique needs. Call The Milner Insurance Group today!