Insurance rates for all types of coverage generally are high. One of the best
insurance values available, however, continues to be an "umbrella"
policy.
Liability insurance protects the policyholder from claims and lawsuits made
against him or her by others. Car accidents, falls, dog bites, malpractice and
many other careless acts are covered by some form of liability coverage.
Liability insurance policies vary widely in the type and amount of protection
they provide.
For example, many Texas drivers have only $20,000 per person in liability
coverage for injuries they cause others. If you cause a $50,000 injury, a
$20,000 auto liability policy leaves you substantially unprotected.
A single umbrella policy can expand your protection for claims made against you
in connection with most careless acts, whether your carelessness occurs in a car
or elsewhere.
Umbrella insurance derives its name from its expansive nature. It acts as an
umbrella, extending a comprehensive shield over you. It generally picks up where
your other insurance policies stop and gives added protection up to $1 million
or more.
Umbrella policies can be bought for personal and for business protection.
These policies tend to be relatively inexpensive because they insure only the
upper limits of coverage. Claims against umbrella policies occur far less often
than against basic liability policies, such as auto and homeowners. For this
reason, greatly expanded coverage is very affordable.
To be eligible for umbrella coverage, you may be required to increase the
liability limits on your basic policies. Some degree of increase may be a good
idea whether you elect to take the umbrella option or not.
With the help of an umbrella policy, you may be able to extend your insurance
protection to $1 million or more for very little additional cost.
Your insurance agent will not charge you to explain available umbrella
protection and quote you a rate.
There certainly is no harm in asking.
