HomeInsurance:  Getting Insurance? Consider Purchasing an Insurance Umbrella Policy

Insurance Umbrella Policy: Is It Too Much?

If you and/or your family have recently been considering purchasing an insurance policy, you may have heard a lot of hype about the fairly new insurance umbrella policy. Unfortunately, however, many insurance agents do not take the time to explain to their clients exactly what an umbrella policy is or tell them why they should pay the extra cost to have this extra coverage. Fortunately, though, you've stumbled upon a great website to get your basic questions answered quickly and accurately.

In the next few paragraphs, you will find out what an umbrella policy is, what type of catastrophes it covers, and why so many people are now adding this to their standard insurance policy. Remember, however, that nothing takes the place of a face-to-face meeting with a qualified insurance agent, and you should probably schedule an appointment with one before you make any final decision.

Insurance Umbrella Policies for Individuals

Though many companies invest in umbrella policies, this article will focus mostly on insurance umbrella policies for individuals. If you are unfamiliar with umbrella policies, they are also frequently known as excess liability, catastrophe liability, or blanket catastrophe liability insurance. The main function of this type of insurance is to close the gap between underlying limits of coverage in your basic insurance plan and possible claims in excess of that coverage.

Frequently, basic personal insurance covers only bodily injury and property damage. Umbrella policies, on the other hand, generally cover additional things such as mental anguish, mental injury, shock, fright, humiliation, false arrest, invasion of privacy, and discrimination. Also, an umbrella policy usually covers bodily injury and property damage claims that are more expensive than the limits of the basic policy.

If this extra coverage seems appealing to you, please remember to read the fine print before entering into a contract. Though an umbrella policy covers significantly more than basic policies, there are still some exclusions. For example, umbrella policies do not cover intentional injury or damage or widespread catastrophes such as pollution disasters. After all, being completely informed of the details of your policy will reduce unhappy surprises later.

With a little work and research, you can be on your way to the best possible insurance coverage in only a matter of time. Good luck!

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