| What
is an umbrella insurance policy
and should you get one? Umbrella policy
offers additional coverage above the
stated amount of a policy.
Umbrella insurance policy protects the
insured's assets up to the limit of the
umbrella policy's dollar amount.
For example, let's say that Bob got into
a car accident and injured 4 individuals
badly.
Bob has
a $250,000/$500,000 car insurance
policy, and he has 5 million dollars in
assets. In case the $250,000 is
not enough to pay one of the injured
individuals or if the total money needed
to pay all four injured individuals is
greater than $500,000, Bob could be sued
and his personal assets will be at risk.
However, Bob has a 10 million dollar
umbrella policy which means that once
the claims go over the $250,000 or
$500,000 the umbrella policy will pay
additional claims up to $10,000,000.
A good policy for those who want to
protect assets. |