Uses for a Personal Umbrella Policy
In the unfortunate event that an auto policy holder is involved in a fatal accident, the family of the deceased could choose to sue the driver. The suit could result in a high judgment claim against the driver. If this claim goes beyond the limits of the driver’s liability policy, the driver is personally liable for the remainder of the judgment. A personal umbrella policy can protect the driver from this heavy personal debt.
Increments on a Personal Umbrella Policy
Personal umbrella coverage often starts at $1 million and can range up to $5 million in increments of $1 million each. As with nearly all other insurance policies, the higher the coverage amount, the higher the premium payments. Many umbrella policy holders take out coverage well above the total of their current assets, as damage judgments can often reach well beyond the defendants’ ability to pay from current resources.
Costs of Personal Umbrella Policy
While coverages of $1 million or more may sound exorbitant to many clients, the costs of such a policy are not so extreme. Customers can often get a personal umbrella policy as an add-on to their current liability policies for $50 per month or less, depending on the client’s current coverage and the additional requirements of the umbrella coverage.
To learn more about personal umbrella insurance, call or e-mail our experienced agents at Simpson Insurance Agency today!