Umbrella? But it's not raining...

Have you ever heard of an Umbrella policy? You may not even be aware of its existence or know that it can be for a personal policy and not just commercial. An umbrella policy is an insurance policy that goes over the limits of existing policies. Most personal umbrellas cover home, auto, and boats. It is called an Umbrella because it goes over your existing policies and provides additional liability coverage. However, the Umbrella is for LIABILITY ONLY. This means that if there is physical damage to your home, the umbrella will not go into effect. However, it is there to protect your assets and future income in the event that you have a liability claim that exhausts what your current limits are. Typically Umbrellas come in increments of $1 million dollars, most being $1 or $2 million. So, if you have a Auto policy with $300,000 liability limits, a homeowners with $150,000 liability limit, and a $1 million dollar umbrella, you personally are covered for $1,300,000 of auto liability and $1,150,000 homeowner liability. The Umbrella policies are very inexpensive and I would recomend one if you have a little extra money to spend on your insurance policy and want to make sure that you are fully covered incase of a claim. Just remember, once your policy limits are exhausted, you can be sued for the rest of the claim, which would go against your personal assets and future income. Hope this helps and look for more posts coming soon. Remember, if you have any question, just post a comment and I will look into it for you!