• It is just for the rich
• It is too complicated to coordinate with existing insurance policies
• It is way too expense to afford

When it rains, it pours and you don’t want to be caught in a storm without an umbrella

What if you were at fault in a major traffic accident? Or you were being sued for weather related mishap on your property? An umbrella insurance policy would have you covered. Umbrella insurance policies provide you with additional coverage to your existing home and auto coverage limits, and hence the word “Umbrella”.

So you say you don’t own a home. Well, if you are a renter you need a rental insurance policy. Umbrella insurance policies can also provide extra coverage on your rental policy.

Here are some examples of where an umbrella insurance policy can come into play:

• Your neighbor is over and she slips and falls on your property injuring her back. She decides to sue you under. your home or renters insurance policy in order to pay her medical bills for the treatment she has received.
• You are in an auto accident in which you are at fault. The other driver decides to sue you under your auto policy.
• A natural disaster in which another person’s property is damaged by, say, a tree on your property crashing down on their vehicle or home. This usually falls into the, “I thought that was covered by my homeowner’s policy” category.

Your auto and home owner’s policy have some liability insurance. This limit would be used to settle a claim. But what if that settlement goes to court and the judge awards the claimant $800,000 and your homeowner’s insurance limit of liability is only $300,000. The carrier for your home insurance would pay $300,000 and you would have to come up with $500,000 on your own. Now all your assets are fair game to pay off the debt. Worried? You should be, with America’s love of lawsuits, you cannot afford to not have an umbrella policy in these brutal times.

But, if you had an umbrella insurance policy that increased the limit of your liability to 1 million dollars, all of your assets would be covered by this umbrella. When it rains, it pours and you don’t want to be caught in a storm without an umbrella insurance. Get a free quote comparison on the variety of different umbrella insurance policies.