Umbrella Insurance Policies Enhance Coverage
The instinct for self-protection is strong. For the first 50,000 years or so on Earth, humans were concerned entirely with physical self-preservation. More recently, however, we have become increasingly concerned about our financial protection.
Insurance companies thrive on this instinct for self-protection.
The sale of liability insurance for autos, homes, businesses, boats, airplanes and the like is one of the largest industries in the world.
Liability insurance protects the policyholder from lawsuits and claims made against him by others. Automobile accidents, incidents involving falls, dog bites, malpractice and many other careless acts are covered by various types of liability insurance policies.
Because the type and amount of coverage vary among policies, many people find it advisable to buy an umbrella policy.
In the insurance business, umbrella coverage is the broadest and greatest protection you can buy. It generally picks up where your other insurance policies end, and gives you comprehensive protection up to limits of $1million or more.
Umbrella policies can be bought for personal and business protection, and include coverage for personal injuries caused to others.
Because these policies only insure the upper limits of coverage, claims are not paid nearly as often as other liability policies. For that reason, this substantial added coverage is surprisingly inexpensive.
Depending on the limits of coverage you maintain on your other policies, you may be able to buy a $1 million umbrella policy for as little as $100 a year.
If your instinct for financial self-protection is strong, this may strike you as a bargain.