Who Needs Umbrella Insurance Policies and How to Save

Mary Rand Home Insurance Editor

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Your auto insurance and homeowners insurance policies provide protection if your ever sued after an accident or cost incurring liability incident.

This isn't total magic though, there are limitations to the coverage umbrella insurance offers — especially considering the court settlements of extraordinary magnitude. If insurance is a financial tool that helps manage risk, umbrella insurance coverage is the ultimate safety net.

Umbrella Insurance Basics
Simply put, umbrella insurance is extended liability insurance coverage that goes beyond the protection provided by your car insurance company and home insurance policy.

Umbrella insurance is extended liability insurance coverage that goes beyond the protection provided by your car insurance company and home insurance policy. Umbrella insurance policy costs generally run $75 to $100 per month for $1,000,000 in extended liability coverage.

As a shopping insurance consumer, you'll find insurance agents offering umbrella insurance to you as a supplement to your homeowners (including renters) policies and sometimes auto insurance.

Remember: Umbrella insurance policies are an entirely separate policy. Umbrella insurance policy costs generally run $75 to $100 per month for $1,000,000 in extended liability coverage.

Why Umbrella Insurance Seems to be for the Rich
Umbrella insurance policies come into play when an insurance judgment exceeds the policy limits of your auto insurance and homeowners coverage. Umbrella coverage generally requires that your primary car and home policies have at least $250,000 of coverage. Here's the thing: the deductibles associated with umbrella policies are high! In fact, imagine a deductible amount in the ball park of $300,000. This contributes to the thoughts of umbrella policies serving the financial needs of the rich.

Terms that are important to this article: umbrella insurance, homeowners umbrella, liability insurance, liability umbrella, cheap umbrellas insurance, home insurance

More Umbrella Insurance Information Online: Umbrella Insurance, Progressive Insurance's Umbrella Page