Policyholder Attorney Bill Voss Talks Umbrella Insurance for the Rainy Days

An umbrella insurance policy, as the name suggests, acts like an umbrella for your other insurance coverage. It gives you additional protection, beyond what your current home, watercraft or auto insurance policy provides. It is designed to fill in the cracks in your existing policies. It also protects you in case you are held guilty in a liability case where you need to pay for damages that are beyond the limits of your individual liability policy.

Here are some essential things you need to know about an umbrella insurance policy:

The premiums for umbrella insurance policies are reasonable, ranging from $100.00 to $200.00 per year for coverage of $1 million. The differences in prices of umbrella insurance policies offered by different insurance companies are not that much. Thus, do not make the mistake of simply picking the cheapest policy in the market. You have to bear in mind that an umbrella insurance policy is supposed to cover the cracks in your existing primary policies. If you need to add a few more dollars on the premium just to make sure all bases are covered, then you should do it rather than end up with a useless umbrella insurance policy later on.

Before buying an umbrella insurance policy, make sure to review your existing policies thoroughly. Your current and primary policy should be well-coordinated with your umbrella insurance policy. Note that the umbrella insurance policy should cover risks that you are exposed to but are excluded from your current policy. You might be wasting your money if you get an umbrella insurance policy for something that is already protected under your existing insurance policies.

Most insurance companies also offer umbrella insurance policies. Before getting a primary insurance coverage for your home or motor vehicle, you may wish to check the umbrella policy options offered by a particular insurance company. You should select the insurance company that offers policies with the least number of gaps or cracks. That way, you only need very few items covered by your umbrella insurance policy. Your premiums may be cheaper too. This will also help you get rid of the problem of having to deal with too many insurance companies, agents and adjusters.

Let’s face it, there are a number of bogus insurance companies in the market. You might be offered an umbrella insurance policy that is too cheap and you feel that it is too good to be true. Do not be misled by offers of unbelievably low prices. You have to make sure that the insurance company you are engaging is reliable and financially stable. You can start with how the company is regarded in the industry. You can ask your friends or relatives who have experienced dealing with that company. Their experience during insurance claims is essential because this will give you an idea of whether or not the company is difficult to deal with when the going gets tough. You can also check online ratings of insurance companies to know where that company stands.