The purpose of the insurance policy is to extend the coverage to the limits you already have. Insurance companies typically provide up to about $500,000 in damages to cars and homeowners. This is enough to cover most claims. However, a serious accident can lead to more than $500,000 in litigation. The umbrella strategy can provide an extra layer of protection for your assets.
The umbrella policy applies not only to the rich. As a Houston farmer insurance agent, I recommend providing umbrellas for many people. Some examples include customers with swimming pools or trampolines. Having assets that may be lost in litigation is a classic sign and umbrellas should be considered. Umbrellas are an inexpensive protection for the amount of protection they provide. For example, you can pay $500,000 or more per year for a $500,000 liability insurance in several cars and one home. A few more hundred, you can add extra million coverage!
Umbrellas do not include everything. If you own a business, personal policies may not apply. Punitive damages may be applied, intentional damages and other exemptions.
Most companies require a certain liability limit for an existing policy before providing an umbrella. It is usually a good idea to put all the strategies together with the same company that writes the umbrella. This may result in a discount and will avoid having to collect and submit other policies to the umbrella company. If you need such a policy, please consult a good insurance agent and explain all terms, coverage and conditions. Customers in Texas can call my Houston Insurance Office at 281-537-2700 for