An umbrella insurance policy covers the increasing amount of the risk you take on with the policies you already have.
Why should I get an umbrella insurance policy?
An umbrella policy is an additional type of coverage. It can be purchased on top of your current auto, homeowner, or renters insurance policies to provide protection for certain types of losses that are above the limits covered by these policies. It will also provide coverage against defamation lawsuits filed against you for libel or slander.
One of the most popular umbrella policies available is called excess liability. This type of coverage provides additional liability coverage beyond what you would receive on your primary insurance policy. For example, a guest slips and falls at your home and sues you for one million dollars and you only have a $500,000 homeowners insurance policy. If the guest prevails in his lawsuit you will have to fork over that additional $500,000 from your pocket. But if on top of your homeowners insurance policy you also had a one million dollar umbrella policy, then you will be covered for the full million dollars.
What does it cost to get an umbrella insurance policy?
An insurance company will factor your location and the number of homes, automobiles and boats you own in pricing your umbrella policy. An umbrella insurance policy usually costs anywhere between $200 – $400 for one million dollars of coverage. After the first million in coverage, you will usually pay less for each additional million dollar increment.
How much umbrella insurance should you get?
At E&Y Agency LLC we can help you determine how much umbrella insurance coverage you may need by factoring in you current liability coverage, net worth, home equity, and retirement plans. You can call us at 248-362-1313 or fill the form below. A lot of people live their lives within a bubble, without first realizing that their lives could get very damaged, should they cause an accident. An umbrella policy can help you to cover many of these risks. Although it isn’t perfect, it can help to give you peace of mind in uncertain times.
