Understanding The Benefits Of Having Umbrella Insurance
If someone brings a lawsuit against you over injuries or property damage they allege that you have caused them, the amount of compensation the individual is seeking may very well exceed the limits of such current policies you hold. These may include Homeowners or Automobile insurance. That's where Umbrella insurance becomes important. It is an insurance policy designed to provide additional coverage that exceeds the limits of liability established by other insurance policies that you have in force.
There are several important advantages to investing in an Umbrella policy. The first is the amount of additional coverage it can offer - usually as much as $1 million or more. The second advantage to obtaining this type of insurance coverage is that it is also designed to provide the policyholder with funds to cover the cost of hiring a legal representation team. Expenses to have an attorney on retainer can add up quickly and cost more than 10,000 dollars. By having an Umbrella policy in place, the policyholder is not subjected to extra financial stress or the threat of bankruptcy in the course of defending him or herself.
The third advantage to having an Umbrella insurance policy is that it offers you liability coverage that is not already covered by Auto or Home insurance policies. This can prove to be very beneficial if you are sued regarding an accident that happens while you are operating a leased car or boat, and can even cover your legal matters ranging for decisions you have made while serving as a board member for a non-profit organization.
Having an Umbrella policy in place can provide you with peace of mind. No matter how deep the financial pockets are of the individual who has filed a lawsuit against you for alleged damages, you will have insurance coverage in place that can handle medical bills, lost wages or pain and suffering that adds up to the millions of dollars.