Umbrella insurance policies: not only for the rich

Umbrella insurance policies: not only for the rich -

While you probably have insurance on your house and car - and you do, do you? - You can not be completely covered. If you were the target of a passive pursuit of several million dollars, what would happen when your insurance coverage was exhausted? Could you lose your home and all your possessions? The answer to the last question, unfortunately, is yes and that is the point of umbrella insurance policies - they blow after traditional insurance policies have been exhausted. An umbrella insurance policy helps protect you from being completely erased even if you are sued for a car accident or an accident at your home that costs more than your liability insurance company is willing to pay.
Traditionally, these were the choices individuals and wealthy families, but the umbrella policies are growing in popularity and consumers are increasingly purchased by the middle class. In this litigious society, a dog nip of the family or a fall on the family trampoline can lead to enormous liability lawsuits, which can quickly deplete even complete insurance policies.
Who should have an umbrella coverage? Some experts recommend that anyone with dogs, teenage drivers in the family or a high risk of further attractive recreational facilities like swimming pools, trampolines or ATV should consider an umbrella policy. This worksheet handy Smart Money (PDF) can help you determine if a comprehensive policy is right for you. We recommend that you talk to your independent insurance agent as part of your total coverage requirements, which should be reassessed periodically. Your agent can help you assess if-we would be such a policy good for you and can find the insurance policy, if applicable. Sometimes you can even cover the cost of an umbrella policy simply by increasing the deductible on your home or auto policy.
According to the Insurance Information Institute, the coordination of policies are usually sold in $ 1 million increments, and the average cost between $ 150 to $ 300 per year for the first $ 1 million in additional coverage. The next million usually costs about $ 75 a year and about $ 50 million each for the continuation. Most insurance companies will not write one unless you already carry insurance of about $ 250,000 on your auto insurance policy and 300 000 $ liability insurance on your homeowners policy responsibility.
Just as knowing that you always have an umbrella in the car on a rainy day, an umbrella insurance policy can give you peace of mind. In this uncertain world, this might be worth a few hundred dollars per year.

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