Catastrophes such as earthquake, tsunamis, tornadoes, volcanic eruptions and other natural disasters are just some of the uncontrolled occurrences that may transpire anytime. These can devastatingly blow away houses, commercial buildings, establishments, properties and other infrastructures at an instant. Casualties are often high; causing extreme misery to people. If these can take place unpredictably, unfortunate accidents or disasters because of one’s carelessness thus happen, too.
Since mishaps and misfortunes like tragic car accidents sometimes happen because of one’s own negligence, it is very important to be insured. There are insurance policies on homeowners and auto that are made available to cover expenses if these unfortunate scenarios occur. And to maximize the coverage of these policies, umbrella insurance does the stretching.
Umbrella insurance refers to insurance or coverage of more than one properties or assets under one sturdy policy. It is like securing belongings under a very strong roof. Having umbrella insurance is a must for every policy holder. It is intended to stretch the limits of a liability protection of an insurance policy, depending on the insurance provider. It covers all the liability claims of the policies beneath it.
The liability section of a policy answers the medical and legal expenses of an injured, careless person. When these expenses are computed and added altogether, the standard liability of one’s policy is often insufficient for payment. So to give solution to this predicament, the umbrella insurance can offer extra liability protection beyond what an ordinary insurance can provide. It can protect an individual and its assets extensively when catastrophic demand goes beyond the limits of an existing insurance policy.
When it comes to legal accusations or claims, umbrella insurance assures a shield of protection against libel, slander and false arrests. Those who are threatened to be sued by third party because of negligence are in need of liability insurance which can be strongly provided and augmented by having umbrella insurance.
But how do one avail this very vital umbrella insurance? It will highly depend on the chosen umbrella insurance provider. But these are the common requirements needed to be prepared: Basic personal information such as the name, birth date, sex, marital status, years licensed, state licensed, and occupation of all drivers in the household. The violation and accident information for the last 5 years of all drivers; all the properties owned including autos, house, leisure belongings and even motorcycles; and lastly, the current insurance company data which involves the expiration dates, losses and claims in the past 5 years.
Certainly, one way of acquiring peace of mind is through purchasing of umbrella insurance. It broadly protects properties and assets from an event when someone is personally held liable or responsible and when tragedies and calamities astoundingly occur.
Life is full of surprises, they say. But rest assured; umbrella insurance may truly keep a person and his loved ones free from the storms of problems and troubles life may accidentally bring.
I was never completely sold on umbrella insurance until I saw what happened to my friend in New Orleans during Hurricane Katrina. He lost his house and almost everything in it… and his insurance covered about 40% of their losses. Umbrella coverage makes sense in those kinds of places, definitely.
Jerry
I’m a little confused… does umbrella insurance exist IN ADDITION to your other policies (so you have a homeowner’s policy, an auto policy, a life insurance policy, AND umbrella insurance), or does it INCLUDE all of these policies (i.e. when you purchase umbrella insurance you’re purchasing all of these, and don’t need to purchase the policies separately)?
Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your other policies to provide extra protection IN ADDITION to your other policies. Umbrella liability insurance pays $1 million, $2 million and sometimes even $5 million or more of a claim, on top of what your basic policies will pay.
Increasing an individuals liability protection is always a good idea, especially if they have assets. Protection for the car, homes, toys and investment properties provide a lawyer of liability protection that a normal policy might only go up to 500k max. Considering how inexpensive umbrella insurance really is there shouldn’t be a reason not to at least compare options and discover how it works and how it protects people.