what is an umbrella contract insurance
umbrella is an insurance contract betwen you and the insurence company.this type of insurance is personal liability insurance that is crucial when you find yourself resounsabile for a claim that is higher than your automobile insurance or homeowner insurance cover. if u own a boat.it will cover if your boat insurance limits are exausted.to own an umbrella insurance policy first u need to have standard howeowners, auto or boat policy. the umbrella insurance policy works after those policy limits are exausted. why do u need umbrella insurance a certain amount of fear factor is involved in buying umbrella insurance. the insurance company will try to convince u that u should take the policy. Rut first you shoud think if u should really take it. many will suggest that you shoud buy this policy if the value of your assets are greater than your auto and home liability. but that doesnt always make sense.because in the case of a lawsuit the awards will easily exceed the insurance policy limits.So umbrella policy insuarance is a good choice usually this type of insuarance is complementing or adding up and is cheaper than others insurances. so it is a a small price for piece of mind. who should use this sort of policy ? the umbrella insuarance its a type of liability insuarance ? if u are involved or one of the members of your family is involved in some kind of accident than the umbrella insuarance comes to work. it pays dor the damage you have done to others parties.it pays for their damages so u should take this sort of inauarance if you -own a house - own a boat -own a car - have pets -or have children by which someone can get affected. we will discuss it later on how the above mentioned points can affect someone else what umbrella insuarance covers it provides covarage beyond the limits of your insuanrance policies or for those claims that are not covered by your policies, Generally it provides covarage to ------ damage of property of others ----- personal liability ------- injuries that happened to someone when there is your fault ---------lawsuits the policy helps you to pay the other party for their damage done by you.people nowadays file cases to each other because we not live in a law-suit happy world.so it is better to get insuared in case some unexpected event occurs how does your umbrella insuarance works? let us give some examples for potential clients to understand how this policy works. suppose your kidd pick ups a fight at school and injures someone.yhe parents sue you for their child injury. you own a dog.it runs out and bites your neighbour. the neighbour sues you for the bite. you are driving your car and you get involved in a serious car accident and injure someone. he files you a lawsuit and the court charges you with a sum that is beyond your liability covarage than the umbrella policy will come into work you made some food for your children going on a field trip.others students ate your food and got sick.their parents sue u your children gets involved in a car accident and injures someone very badly, than this policy will cover for your losses if your auto insuarance exhausts your tenants dog bites someone and he sues you gor that because you are the lanlord. someone fallover in a crack in the sidewalk of your property and sues you for that the child of your neighbor falls while ge was playing in your garden and their parents sue u these kind of unexpected events can occur in your life. for this type of event unbrella insurance covers u and pays the other party for your losses this type of policy also provides coverage if u are involved in malicious prosecution slander libel false arrest detention and false imprisoment how can umbrella insuarance protect you? lets suppose you are involved in a car accident. lets say you cause a damage of $200000 to others. now your automobile insuarance is for $100000. so after u pay $100000 from you auto insuarance u still have to pay $100000 to the other party if u have an umbrella insuarance than it will pay the rest of the money to the othe party. in this way the policy will work for you.it pays you after your regular insuarance policy exausts. how much does it costs ? the cost of the policy depends on how much cover you want to get.the more property or car you own,the more members of the family you get the more will it cost you.but this type of policy is usually cheaper compared with other type of policies. for 1 million dollars covarage you will have to pay from 150-300 depending on the insuarence company. foranther million you will have to pay 75$ more. the umbrella policy can also cover the attorney fees and other expenses related to the lawsuit conclusion even a very careful person can be involved in an accident. the lawsuit filed against him can put him in a hige monetary problem. while this type of accident can occur unexpected to anyone.so it is always a smart decision to stay protected against big financial losses |