The Value of Umbrella Insurance Policies: Extending Your Safety Net
Published by insurancenow Editorial Team
Standard home and auto insurance policies carry maximum liability limits, often capping out around $300,000 or $500,000. In an era of escalating litigation awards and medical judgments, a severe accident or a liability claim on your property can easily exceed those thresholds.
How Umbrella Policies Work
An umbrella insurance policy sits on top of your existing home and auto coverage. Once your primary policy limits are exhausted, the umbrella policy kicks in to provide an additional $1 million to $5 million in liability protection. Surprisingly, umbrella insurance is often one of the most cost-effective coverage expansions available.
Protecting Long-Term Wealth
At insurancenow, we view umbrella policies as essential wealth-preservation shields for clients who have accumulated personal savings, retirement funds, or real estate assets that could be targeted in a major lawsuit.