When It Rains, It Pours - Extra Protection with an Umbrella Insurance Policy

Accidents can happen. Oftentimes it can affect lives and properties. Although your car and/or home insurance can cover such liability, they can only cover so much. Depending on the extent of the damage, other parties may sue you and exhaust your insurance policy. Aside from the expenses you'll incur on court proceedings, there's the likelihood that the complainant will be favored and take it's claim against you. In times like these, you'll want extra protection of an umbrella insurance policy.

An umbrella insurance policy is an add-on to your standard car insurance or home insurance. When your liability exceeds your basic insurance coverage, your add-on policy takes in effect, easing the blow on your finances. Without an umbrella insurance policy, you'll have to shoulder all expenses in excess of your insurance coverage. When an injured party decides to sue you for additional claims, you'll end up surrendering your house, car and other properties to cover your liability. The value of these properties will be assessed, and if they are not enough to cover the damages, the complainant will have claim over your earnings until you meet your obligations.

Such unpleasant scenarios can be avoided with when you have umbrella insurance. These policies are often sold at an increment of a million dollars. With this policy, your home insurance of $500,000 becomes $1,500,000. Lawsuit claims often reaches $1 Million or more; it is then advisable to purchase more umbrella policy especially if you have a lot of properties. That is not to say that these types of insurance are only for the rich. If you only have limited properties, they might not be enough to cover your liability when assessed.

An umbrella insurance policy worth a million dollars is enough to cover huge claims that spare your small property from litigation. Policy premium can go as low as a couple of bucks and by shopping around, you will find a deal that meets your financial capacity. You could also try purchasing one from the company where you got your auto or home insurance; they could offer you a special rate. Spending a little extra is worth nothing compared to what can happen in the future. Nobody wants to get into an accident, even more, a lawsuit. But these are situations are beyond your control.

Even a simple animal collision can be blown out of proportion and use your entire auto insurance coverage. A neighbor accidentally tripping in front of your lawn can file a claim. The accident might not even be your fault, but if your property caused the damage, your responsible for it. An insurance policy can cover the basics, but if your liability goes beyond the limit, you'll end up with more headaches.

It is wise to invest on an umbrella insurance policy. The key is to determine your present financial capability. By determining your earnings, the value of your properties along with your insurance coverage, you'll know how much extra protection you'll need for you and your family.