Opening Up An Umbrella Insurance Policy

August 7, 2009

What, exactly, is an umbrella policy? Just like the name of the accessory it describes, an umbrella policy provides additional protection over and above basic homeowner’s and/or auto policies. So, for example, if a person has an automobile policy that has policy limits of $100,000, an umbrella policy can be purchased that adds an additional one million dollars of coverage(or more) on top of that auto policy.

Why buy one? Just read the Web, the newspapers, or watch TV. Judgments, that’s why. A simple slip and fall at a home can mean hundreds of thousands in dollars of liability for a homeowner; a car accident with serious injuries to one or more can be equally, if not more costly, for the driver at fault. What the umbrella policy does is protect whatever assets a person may have beyond the limits of the particular policy. It is insurance on top of insurance, so that personal assets are not at risk if the costs paying a claim exceed the underlying policy limits.

When obtaining Georgia insurance quotes, always ask about the cost of an umbrella policy. Depending on how much additional coverage you want and the particular insurance company, the cost of an umbrella can be as little as $150 or so. You’ll get a better rate overall if you bundle your homeowner, auto, and umbrella policies with one insurance company.

Most companies will offer umbrella policies in connection with automobile coverage. Even in these tough economic times where every dollar counts, umbrella coverage is definitely something to consider when buying insurance. The cost of an umbrella policy is minimal to the peace of mind it provides. You hope that you never have to make a claim on such a policy, but you’ll sleep better at night, knowing that it’s there to protect you and your assets, if and when you need it. It is the ultimate protection against that rainy day.

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