Umbrella insurance is the kind of coverage that can act as a hedge against extra liability. Usually it is there to protect a policyholder from potential lawsuits and big claims. Having this protection can greatly help protect one’s financial future.
Umbrella insurance coverage provides an extra layer of protection that goes beyond the limits of normal policy coverage for your home, car and boat. It can also cover a policyholder for any claims against him or her like false arrest, slander, libel or from legal action from renters one may have. It is designed to come into effect when the liability of your existing insurance policy is exhausted.
Umbrella insurance can be very useful for those who own rent out to tenants. It provides the landlord protection from such actions as legal claims for a fall, a dog bite or an injury while one is visiting a unit in the rental property. Those involved in an auto accident or some other kind of incident in which property is damaged can benefit too. So can one who might be held responsible for the injury to another person as a result of an accident.
This type of coverage is designed to be used as an additional level of coverage beyond a normal policy. In other words, it is yet another way for a policyholder to be protected from costly out-of-pocket responsibility.
Coverage amounts are generally available in amounts starting at around 1 million dollars. However, remember that there are even bigger limits available for people wishing to have extra added protection. The benefits of this coverage include asset protection, a priceless sense of peace of mind and a relatively low cost for coverage.