Most of the time, when people think of insurance they think of fixing their car after it has been in an accident or having their home rebuilt after a fire. However, in many cases, it involves protection for a person who has been taken to court. Umbrella insurance is a special kind of policy that layers overtop both auto and home policies and offers extra liability protection.
This is very important protection for those who have a lot of assets. Nobody wants to get sued for a large amount, and find that they are losing more than they have. An umbrella covers both home and auto, and often offers at least one million dollars in extra liability protection. This means that once the policy limits have been exhausted under the home or auto insurance, the umbrella insurance will kick in and pay the rest.
Someboody who has an expensive house, a lot of bank accounts and a lot of assets really needs to protect them. They may not realize that if they only have 300,000 worth of liability protection, that they are putting their livelihood in jeopardy. Nobody wants to find that they are having their wages garnished to pay off court damages. Also, nobody wants to have their assets seized to pay for a judgement.
Additionally, this policy will provide legal representation to the person who has the policy. This means that they won’t have to worry about going out to find their own lawyer to handle the case, and their policy will also pay to its limits on the damages awarded. Many don’t realize that it is very possible for somebody to take legal action when they are involved in an auto accident and cause damage to another person. Protect everything under an umbrella, and don’t risk losing any asset because of a lack of adequate protection.