Insurance Coverage Types
Umbrella Insurance Policies
The term “Umbrella insurance” refers to policies of insurance that some people get that is “over and above” all other insurance they might have. Typically, such insurance is offered by the same companies that provide automobile insurance for those who are willing to have larger coverages on their vehicles ; umbrella insurance usually is sold in increments of $1 million or $2 million and is very inexpensive. An example may be helpful: A family has a policy on its cars that covers up to $300,000 liability coverage. Their teenage son causes a wreck in which a claimant gets a judgment for $1.5 million. The family was carrying a $2 million umbrella policy which pays off the difference of $1.2 million. The family does not lose its home.