Umbrella Policy Protects You From Lawsuits
If you have standard homeowners, renters or auto insurance, you have some liability coverage. This insurance helps pays for legal judgments against you as well as your lawyer’s fees, up to your policy’s limits. However, you may want to consider buying an umbrella policy to give you better protection of your assets. An umbrella policy is effective, after you reach the limit on the liability coverage in your homeowners, renters, condo or auto policy. This policy will also cover you for other legal matters, such as libel and slander suits. Ask about this extra coverage, when you apply for home insurance quotes.
Home insurance protects not only your house and your personal belongings, but it also covers people who may be hurt or injured on your property. Most standard home and renters insurance policies provide at least $100,000 of liability coverage. You can increase your limit to $300,000 or $500,000. This coverage will help protect your assets, for instance, if you have a yard sale and a customer injures herself and sues you. Or it will protect you finances, if your dog bites one of your guests and he sues you. Dog bites account for one-third of all homeowner insurance liability claims, according to the Insurance Information Institute. Review your policies, when you obtain home insurance quotes.
Some personal finance experts recommend you have at least a $1 million umbrella policy, even if you have less than $1 million in assets. If you are sued, you may be ordered to pay a legal judgment based on your current assets and future earnings. According to the Insurance Information Institute, you can buy a $1 million personal umbrella liability policy for about $150 to $300 a year you. If you earn more than $100,000 a year or own more than one million in assets, you will want to have more coverage. The next $1 million worth of coverage will cost about $75 and each $1 million-dollar increment after that will cost about another $50, according to III.
Umbrella policies are inexpensive, because they become effective after the liability limits on your other policies have been reached. However, in order to buy an umbrella policy your existing policies must meet certain limits. Before you can buy a $1 million umbrella policy, most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy. Determine your liability needs, before you apply for home insurance quotes.
Remember when you buy a homeowners or a renters policy, you’re insuring the structure of your home and your personal belongings in your home. Once you have determined the best coverage for your family’s needs, you’re ready to obtain home insurance quotes. Call agents in your local area, contact several insurance companies directly or use InsuranceQuotes.com to instantly get competitive insurance quotes from the nation’s leading insurance providers. Take the time to protect you and your family today.