Umbrella Insurance Costs

Everyone knows to grab an umbrella when it is supposed to rain but some businesses get soaked by not preparing for a disaster by purchasing umbrella insurance. Umbrella insurance is a liability insurance policy that protects the assets and income of the policyholder to a greater degree than the limits of their primary policies. The difference between excess coverage and umbrella insurance coverage is that excess coverage goes into effect when policies are totally exhausted and umbrella coverage fills coverage gaps. Umbrella insurance costs vary from policy to policy and the coverage goes above and beyond a regular policy. Take this example for instance: John has a homeowners insurance policy with a limit of $500,000 and an auto insurance policy with liability limits of $700,000. A million dollar umbrella changes John’s limits to $1,500,000 for a homeowner’s insurance claim and $1,700,000 for an auto insurance claim.

umbrella insurance costs

So why would someone choose to spend the extra money to purchase umbrella insurance and undertake umbrella insurance costs? Unfortunately the amount of lawsuits filed has increased over the years and umbrella insurance can assure that you will be able to pay for expenses like an injured persons medical bills, physical therapy, and lost wages. Not only can umbrella insurance cover those costs but it can also provide coverage for a legal defense representative. What types of information are needed for an umbrella insurance policy? Well, of course basic information like name, birthdate, etc. but you will also need to provide information on the property you own like a home, automobile, rental units, etc. Umbrella insurance costs vary from policy to policy and the coverage goes above and beyond a regular policy. One tip that some businesses take advantage of is to make sure an umbrella deductible coincides with existing home and automobile insurance. A business can do this by buying all three policies from the same insurer.

So how much Umbrella Insurance coverage would you need to protect your home or business? The first thing you will want to do is to add up your assets. That includes the money you have in the bank, any stocks and/or bonds you may own, any 401 (k) accounts that you have been contributing to, retirement savings accounts, the value of your home, and the value of any other property that you may own. Next, you will want to take a very close look at what type of coverage that you have on your home, property, rental properties, etc. It’s also very important to make sure that your current liability policies cover your ALL of your assets. If your protection does not go above and beyond your assets you should strongly consider a personal umbrella policy. Obviously you will need to analyze the umbrella insurance costs and determine how much coverage your business or personal property needs. vary from policy to policy and the coverage goes above and beyond a regular policy. For example, a one million dollar policy can be purchased for about $300 however there are a variety of factors that affect premiums. You might be surprised to learn that your driving record can affect the cost of your premium! In some cases your driving record has more of an impact on the cost of premium than your record as a homeowner.