CE Capital Finance

Umbrella insurance policies are very unique in the fact that they provide additional liability protection. Most of these policies provide an additional one million dollars in coverage. However, there are certain occupations that are banned, rules that must be followed, and disclosures that a policy holder should know. Here are the top ten things you should know about an Umbrella insurance policy.

1. Umbrella policies are additional PERSONAL liability policies. This means that you are protected from suits as a result of auto accidents, home owner claims, and also personal things such as defamation of character.
2. Legal defense is included. If a claim arises that must go to trial, an attorney will be provided.
3. Liability limits on your auto policy must be at the maximum allowed, which is generally 300,000. This can lead to a slight increase in premium, which in most cases, is only a few dollars.
4. Not all policy holders are eligible. This policy is usually only offered to a preferred group of policy holders.
5. Umbrella Polices are written on a yearly basis.
6. There is a limit to the number of home and automobiles that can be covered.
7. Depending on the method used by your insurance carrier, you could total 1.3 million in actual coverage. Some insurance companies will raise the insurance liability to the 300, 000 limit, and then provide the additional one million on top of that. While other companies will write the Umbrella policy in whatever amount it will take to give you a total of one million in liability coverage.
8. Certain breeds of dogs can also disqualify an applicant.
9. Being a member of a board can put you at greater risk of a law suit; which can also lead to disqualification for an Umbrella policy.
10. Driving records of other household members can be the difference between getting an Umbrella policy or not!

While an Umbrella policy is a great option for protecting your assets, not everyone is eligible. Besides the obvious benefit of one million dollars in liability protection, there are also other great benefits provided at no extra cost!