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What is an Umbrella Insurance Policy?
Hi, this is Kevin Hayslett and the question is what is an umbrella insurance policy and is it right for me? First of all we need to understand what is an umbrella insurance policy. What that does is just what it sais it is an umbrella, which means it protects your assets against law suits for injury you may cause another person as a result of your negligence. Typically the umbrella takes over where your other insurance leaves off. For example if you have a 100-300 B.A., bodily injury limits of you automobile policy your umbrella will take over after you 100 is over. So, if you get involved in an accident and you have a judgment against you for $ 800,000.00, your primary automobile insurance will cover y the first $ 100,000.00 if you have a million dollar umbrella it would start covering you anything over $ 100,000.00 up to the limits of the policy, in this case one million dollars. So you would have a million dollars worth of coverage, $ 100,000.00 from your primary insurance company and another $ 900,000.00 on top of that from your umbrella policy.
Most people say: well, I can’t afford an umbrella policy. You would be surprised. In most states in the country you can purchase an additional million dollar umbrella for less than $ 400.00 per year. But what does that cover you for? Generally it will cover you for any injury or any damage you cause another person trough your negligence. Sometimes your umbrella will cover additional auto damage you may cause or auto injury you may cause. Additionally it may cover your property for example if someone is injured on your property trough your negligence it will take over were homeowners leave off. So when evaluating your assets and your decisions for insurance needs talk to your agent about an umbrella policy. It may be more affordable than you think.
Carlson Meissner Hart and Hayslett serving the community since 1971.
