Bad things happen sometimes. That’s why we buy insurance coverage for our cars and homes. Occasionally, the bad thing that happens might be because of something you did wrong, like an at-fault auto accident or an injury that occurs on your property. In that circumstance, you might be sued by the injured party. While your auto and home insurance will pay for the cost to defend and settle an injury claim, there is a real possibility you could exhaust your coverage limits. This is where a personal umbrella policy is invaluable, buy providing a secondary limit of liability insurance.
Umbrella is a perfect description for this type of policy. In essence, it provides coverage above and in excess of your primary auto insurance, home insurance and many other types of personal insurance policies. A typical personal umbrella policy provides $1,000,000 of additional liability coverage. But higher limits are available, typically up to $10,000,000.
Do no make the mistake of thinking an umbrella policy is only for the wealthy. Anyone that owns a home, a business or has assets to protect should consider buying a personal umbrella policy. The cost of this type of insurance policy is very reasonable. For a Nevada resident, the expected cost of a personal umbrella policy is around $250 per year. The cost will vary depending on the number of insured vehicles and homes.
It is also important to understand that an umbrella provides only liability coverage. This means it pays for damages (property or injuries) for which you are legally liable to another party. An umbrella does not provide physical damage coverage to your home or autos. A personal umbrella policy also does not generally extend to your business operations. It will, however, usually provide liability coverage for many types of volunteer activities you may be a part of.
Getting a quote for a personal umbrella policy is simple. Contact the experts at Safeguard Insurance at we will evaluate your underlying auto and home insurance. We can recommend an umbrella limit that fits your budget and provides the protection you need.