The Schafer Law Office

Umbrella Insurance Policies

Many people have heard of Umbrella Policies but are not quite sure what they mean. An Umbrella Policy is a policy that is not part of your car insurance policy or your homeowners’ policy. It has to be purchased separately and usually cannot be purchased unless there is a Liability Coverage on your car of at least $250,000.00 per person, $500,000.00 per accident and $100,000.00 in property damage. There must also be a homeowners or renters policy of at least $300,000.00.

The purpose of an Umbrella policy is to provide protection when other policies do not. If there is a situation where an accident occurs and the policy in place does not cover the policy owner or if the policy isn’t enough to cover all of the expenses the Umbrella policy will kick in. One aspect of this coverage to remember is the limits of any homeowners or underlying auto insurance must be completely exhausted before the Umbrella Policy can be used.

This type of policy is not generally offered by agents, you have to ask. Generally a one million dollar Umbrella Policy will cost somewhere in the area of $200.00 to $400.00 a year. This is a layer of protection no one should be without. This is an effective way to protect your assets. I would always have an umbrella policy if you own a home or have valuable assets. You should ask your insurance agent if you qualify for umbrella coverage and what the cost to you would be. Make sur your assets are protected.

For more information on insurance and  Louisville, Ky attorney Mike Schafer go to www.mikeschaferlaw.com