How much umbrella insurance do you need?

Answer 1

An umbrella policy was created to provide additional coverage when a lawsuit brought over injuries and/or property damage that you cause exceeds the liability limits on your car insurance, home insurance, boat insurance, etc.

Answer 2

Umbrella coverage (sometimes called "excess coverage") is an amount of coverage that sits atop primary policy limits. It is notmally written as a separate policy, or may be an endorsement to your primary policy.

Stated otherwise, if your underlying liability coverage were $100, 000, you may be able to get an umbrella policy that takes your total liability limits to $1Million or more. The premium for umbrella coverage is generally low, because the risk of it being triggered is lower; the limits of the primary policy have to first be exhausted.

The determination of how much you need requires an assessment of the risks that you face, that which you are trying to protect, and what other, if any, risk management techniques that you use. An experienced, licensed insurance agent, perhaps in conjunction with a financial planner or your accountant, would be good sources of guidance.

Answer 3

In the case you are sued, Umbrella insurance covers defense expenses, judgments and legal costs and protects against liability associated with non-bodily and bodily injuries. The following are usually protected by an umbrella policy:

Personal injury

Bodily injury to others

Property damage

Slander

Defamation

Libel

Invasion of privacy

Defense costs

Legal settlements

Wrongful eviction

Wrongful entry