Many adults have a hefty portfolio of insurance policies. You may have insurance on your automobiles, homes, personal property, medical costs, and life. Some may cover long-term care or provide income if you become disabled. With all of those policies, you might wonder what benefit umbrella coverage can add to the mix. Here are three good reasons to consider adding personal umbrella insurance to your portfolio.
Higher Coverage Limits
An umbrella policy works by providing blanket coverage that extends the limits of your other policies. So, if you have a $100,000 liability limit on your home policy and a $1 million umbrella policy, you would be covered for any claims up to $1.1 million. In an overly litigious society, this can provide substantial peace of mind.
In addition to raising limits, an umbrella policy can also expand coverage on your policies. That means something that is not covered by your home or auto policy, such as legal costs or claims for slander, might be covered under the umbrella policy.
Because an umbrella policy expands coverage and limits on all of your listed policies, it is generally a much more cost-effective solution than increasing each policy individually.
Adding umbrella coverage makes sense for many people. Talk you your insurance agent today to find out if it is a good solution to managing your personal liability.