Your Miami home and Miami auto insurance policies do not have unlimited benefits. In order to control the amount of risk these policies are exposed to, and in order to determine a meaningful premium, insurance companies must place limits on your coverage. These limits put a cap on the amount of benefits that can be paid out to you or anyone you are liable to through an insurable incident.
But just because an insurance company has declared a limit to your benefits doesn’t mean there is a limit placed on the amount of money you could be liable for if someone is injured at your home or in an auto accident in which you are determined to be at fault. It also doesn’t put a cap on the amount of personal property damage you may be liable for. So what happens to any amount that exceeds the insurance company’s limits? The insured must pay for that out of his or her own pocket.
Naturally, this strikes fear in the hearts of many who realize that there could be no upside limitation on the amount of money they may need to pay to another party in liability damages. But there is another resource that could help protect the wallets of many: umbrella liability insurance.
Umbrella liability insurance is a supplemental insurance policy that can add an additional $1 million or more in coverage above and beyond your home or auto policy limits. In essence, umbrella policies fill the gap that’s left by traditional home and auto policy limits.
With up to $5 million in additional coverage available, umbrella policies create a very generous cushion between your insurance policy limits and your wallet in the event that you are ordered to pay an expensive claim. These policies can prevent the liquidation of your personal assets in an effort to comply with a judgment to pay and best of all, umbrella policies are affordable. Because they aren’t responsible for the first $1 million or so in damages, they do not have high risk of claims, so they can be priced competitively.
Whether a liability claim comes from an accident or preventable oversight, you may be found liable for a great deal of money that your insurance policy won’t cover. An umbrella liability insurance policy can provide the additional layer of protection you need at a price you can afford.
No comments:
Post a Comment