One of the most underappreciated insurances available today is the Umbrella Insurance policy. These policies usually offer a minimum of $1,000,000 in coverage and usually start around $150 per year in premium. The Umbrella Insurance policy is a supplemental liability coverage that provides policyholders with extended liability limits for all their underlying policies such as home, auto, boat, etc. Having this added protection from the umbrella can protect your home and assets against liquidations or garnishment awards to someone else for negligence or damages you might have caused them.
How Do You Qualify for An Umbrella Insurance Policy?
The Umbrella Insurance policy follows your Homeowners Insurance policy. This means that if you do not own a home and want the umbrella on your Auto Insurance policy, the umbrella requirements will mostly always require your home as a part of the agreement. Even though the umbrella policy follows the Homeowners Insurance policy, it extends to all the other insurance policies in your portfolio. This could include:
- Your Auto Insurance policy
- Your Boat Insurance policy
- Your Motorcycle Insurance policy
- Your beach home – (Must be owner-occupied)
- Your all-terrain vehicle policy
- And more!
Note: The umbrella policy liability limits would not take effect until the liability limits on the policies above were exhausted of their limits. The umbrella is secondary to underlying policies.
As far as requirements go for the Umbrella Insurance policy, most carriers will require you to carry a minimum coverage on your home and auto policies. These minimum coverages you must have to qualify are as follows:
- Homeowners Insurance Liability – (Coverage E on your Policy) – $300,000 to $500,000 – (Most Homeowners Insurance policies come with $300,000 standard.)
- Auto Liability Insurance – $250,000 for Bodily Injury and $500,000 Per Accident.
- Combined Single Limit (CSL) – $300,000
If you have these insurance limits on your home and auto policies, chances are you already qualified to purchase an Umbrella Insurance policy. At this point, you would just need to contact Tagge Insurance, Located in Springfield, MO. They take the time to work with you, understand all your needs, and find the right Umbrella Insurance policy for you.
How Can Your Umbrella Policy Help While Traveling Abroad?
With all the added features of an Umbrella Insurance policy, many people don’t know the umbrella has another compelling feature. The umbrella policy can provide added security for you and your family on claims your underlying policies may have denied. This includes incidents you find yourself in while traveling abroad.
If you are traveling out of the United States of America and find yourself in a not so great situation, and extra liability protection is needed, don’t forget about your Umbrella Insurance policy. Every policy is a little different from state to state from carrier to carrier. It is imperative you work with a trusted umbrella provider like Tagge Insurance. They will help you go over the policy coverage and help you truly understand your new umbrella policy, and get it to work for you.
Final Thoughts
State or federal laws do not require umbrella Insurance. However, having this policy is an excellent idea for those in almost any situation. Especially if you have assets or future earnings you would like to protect. With medical costs increasing daily and lawsuits increasing twice as fast, you never want to find
How to Learn More
To learn more about Umbrella Liability Insurance, contact the agents at Tagge Insurance. Our licensed professionals will be happy to answer any questions you have.
