Understanding Insurance Claims

Adding Umbrella Insurance To Your Policy

Liability insurance covers you in the case of an accident, but it only covers you up to a certain amount of money. Many people want more protection than what their liability insurance covers, and that's where umbrella insurance comes in. 

What is umbrella insurance?

Umbrella insurance adds extra liability coverage to your auto insurance policy. 

Every auto policy has a certain amount of liability coverage that will cover property damage and bodily injury up to a certain point. Umbrella insurance adds to the amount of money that would be covered and will also potentially cover legal fees, malicious prosecution, false arrest, libel, and slander. 

How Much Does Umbrella Insurance Cost?

Typically, a million dollar policy will cost anywhere from $150- $300 a year depending on your personal situation and what company you use for insurance. If you have assets that equal more than that, it's a good idea to increase the coverage. The premium will go up, but it won't go up unreasonably. You can get a two million dollar policy for $225 - $375. A three million dollar policy will cost $275 - $425. A four million dollar policy will cost $325 - $475. A five million dollar policy will cost $375 - $525. 

What Do I Need to Get Umbrella Insurance?

To get umbrella insurance your insurance agent will need a list of all of your vehicles, properties, and any other assets. You will also need to tell them who covers your assets and what your limits of liability are on those assets. Finally, you need to tell your agent if you are involved with a board of directors or a non-profit. 

How Much Coverage Should I Get?

Umbrella insurance offers coverage options from one million dollars to five million dollars. 13% of personal injury liability settlements reach the million dollar mark, so you want to make sure to get enough coverage.

While determining how much of a policy to get, you need to determine your net worth. Your net worth is the value of your assets minus the value of what you owe. You also need to consider how much you will make in the future and how much risk you take. 

You should still consider getting umbrella experience even if you don't have assets. If you are found financially responsible for an accident, you could still be forced to pay with your future earnings. 

How Can I Save Money on Umbrella Insurance?

Save money on your umbrella insurance by raising your deductible, compare quotes among different insurance companies, and bundle your insurance. 

For more information, visit websites like http://www.unitedsecurityagency.com.