There are basically 3 benefits to umbrella insurance. It provides additional lawsuit coverage of $1 million or more, it provides additional coverage for legal defense costs, and it provides liability coverage for some lawsuits not covered by your basic auto or home insurance policy.
What would happen if you were somehow unable to work? Does your employer provide any income if you are disabled? An insurance expert can gather all the facts to help you determine so you can make the best decision on disability insurance.
How is umbrella insurance different from excess insurance? Excess insurance only goes into effect when all other policies are exhausted, but umbrella insurance will fill in current insurance coverage gaps for wider and more accessible coverage.
If you have a son or daughter heading off to college, consider having them take out whole or term life insurance. Making the low monthly payments is a great way for them to build their credit rating.
If in the course of a lawsuit in which you are found negligent and a judgment is issued that exceeds the limits of your auto or home policies, you can really be at risk. An umbrella policy is there to kick in and protect your assets if your policies are ever exceeded.
Keep in mind that the water damage coverage of your homeowners insurance policy only covers the damage, not replacement of the malfunctioning system. For example, the damage ruptured pipes cause may be covered, but the pipe repair is not.
