In the event that you are the subject of a lawsuit, both your homeowner’s insurance and auto insurance provide a certain amount of coverage against these types of liability claims. This allows you funds to pay any claims against you as well as payment for the lawyer fees to defend you, as long as they are within the maximum limits of the policy.
However, in a society like the one in the United States that is based on lawsuits for damages, especially civil lawsuits, you may very well want additional protection. This extra protection is obtained with the purchase of an umbrella liability policy that covers (covers like an umbrella) above the limits of the home or auto policy you have.
The umbrella insurance policy goes into effect once you have reached the limits set forth in your other policies, such as homeowners insurance, condo insurance, or auto insurance. This policy gives you protection against lawsuits for damages, defamation, slander, or dishonor. For example, for an annual premium of between $150 and $300, you may be able to purchase the additional coverage of a personal umbrella policy of up to $1 million. The next million of coverage can cost you $75 more a year, and the third million is cheaper. It will cost you about $50 more a year.
Consult Your Insurance Company
Since the coverage of an umbrella insurance policy begins to take effect once the other limits of your regular policies have already been exceeded, there are a number of conditions that must be satisfied before being allowed additional coverage. Most insurers require existing minimum limits to be at least $250,000 liability on your auto policy and at least $300,000 on your home policy before you can purchase a million-dollar umbrella liability policy of additional coverage. Consult a Florida Insurance Agency, if you are unsure how to proceed.