In these days people sue for anything and sometimes win. How good are homeowner Umbrella polices and do they guard you against almost anything. Is there any other supplemental insurance to cover you for everything?
2006-10-21 13:37:35 · 6 answers · asked by Anonymous in Business & Finance ➔ Insurance
They won't guard you against almost "anything"...they are personal liability policies to help protect your assets, mostly. You can add riders in some instances if you have special circumstances, for example, you operate a business out of your home. Most people get them because they have money to protect, or because they have absolutely nothing to protect, and getting sued by someone would devastate them financially without the extra polity protecting their money. It's a good thing to consider, especially given that most peoples' auto insurance policies do not have limits high enough to protect them in anything more than a minor accident.
2006-10-22 07:35:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Umbrella policies were previously recommended to only the wealthy, with a lot of assets. In today's world, people from all walks of life are taking out umbrella policies to protect themselves from huge judgments being awarded. I don't know if any insurer writes higher than $5 million for an umbrella policy, but even that can leave someone in a position which jeopardizes their assets if the judgment is more than the policy pays. There are tons of frivolous lawsuits, but the cases where you are grossly negligent is when you have to worry about having a large amount of damages awarded. There is no guarantee to have your current or future assets protected (they can garnish your wages for the rest of your life to satisfy the judgment.) Each insurer will have different exclusions that the umbrella won't cover, but the insurer I work for covers basically anything except intentional acts or environmental hazards caused by underground oil tanks. I highly recommend paying the few hundred dollars a year to take out an umbrella policy rather than having to face a huge judgment and be paying for the rest of your life.
2006-10-21 21:07:02 · answer #2 · answered by Rexy 3 · 0⤊ 0⤋
Umbrella policys are great, they help to guard you against anything and everything. I pay 150 a year for a million dollar policy. Keep in mind that the umbrella policy only kicks in after your regualr policy is exzausted. Eg. for my car insurance I needed at least 100,000 worth of liability coverage in order to have the umbrella policy.
2006-10-22 13:27:31 · answer #3 · answered by samlevine05667 2 · 0⤊ 0⤋
Umbrella is the best you can have. You need a minimum of ten times your annual salary, that covers everything including liability.
2006-10-21 20:39:33 · answer #4 · answered by my space 3 · 0⤊ 0⤋
They are very effective. That's about the best protection you'll get for a lot of different risks.
2006-10-21 22:04:30 · answer #5 · answered by Chris 5 · 0⤊ 0⤋
very good protection
2006-10-22 07:49:01 · answer #6 · answered by Loollea 6 · 0⤊ 0⤋