Umbrella Coverage Insurance

What happens if a claim costs more than the limit on your home or car insurance policy? Any amount over your policy limit is your responsibility – unfortunately, these types of damages can be financially devastating. To cover the costs of a significant insurance claim against you, you could be forced to use money from your current assets, such as savings accounts, 401 (k)s, or even your home. Your future earnings could be at risk as well. While an excessively large claim or catastrophic event is unlikely, insurance companies offer umbrella policies for customers who want to protect their assets and feel more secure.

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Umbrella insurance provides additional liability insurance that goes into effect when a claim exceeds the limits on your homeowner’s or car insurance policy. An umbrella policy works with your existing home or car insurance – it can even cover some losses that home and auto insurance do not cover. You can purchase umbrella insurance to cover $1-5 million or more, insuring you for a vast sum, yet without a high premium.