Homeowners Basics

...........................

Buying and Saving Money

How much homeowners insurance do I need?

How do I pick an insurance company?

How do I get the proper coverage?

Why insurance costs so much?
How much will it cost?

Do I need separate coverage for jewelry?

How can I save money?

How do I maximize my savings?

What information do I need to provide to my agent?

What if I can't get coverage?

How often should I review my policy?

Should I purchase an umbrella liability policy?

How do I value my home properly?

...........................

Help! I have to file a claim

...........................

Home Owners Tips

...........................

Videos

...........................

Home Insurance News Feed

Home Insurance - Should I purchase an umbrella liability policy?

If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgments against you and your attorney's fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That's what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.

© Insurance Information Institute, Inc. - ALL RIGHTS RESERVED  

About Us | Privacy Policy | Terms and Conditions | Contact Us | Sitemap

Copyright © 2008 Insurance for Everything Inc | Auto, Life, Health, Home Insurance Quotes From Multiple Companies