11/12/2012 - Clarifying some mischaracterizations of umbrella insurance
As umbrella insurance
policies become increasingly popular with American consumers, some people may have some confusion as to just what they are and what they provide for.
Insurance expert George Dahlinger of the Idaho Business Review says that in his career, he's come across many people who have certain assumptions about these plans.
"There have been statements such as, 'I have an umbrella policy, so everything is covered,' or 'I have an umbrella policy, so I don't need any other insurance.'
In reality, umbrella insurance is more or less a supplement to a traditional policy, Dahlinger notes, and only goes into effect if the base policy's limits have been exhausted. For example, if a business is sued for causing an accident and the award settlement is $1.75 million, an umbrella policy will provide for the added expense if the policy has a $1 million limit.
He added that umbrella plans typically come in $1 million increments and are priced lower than basic auto or businessowners insurance
plans. To learn if umbrella insurance is right for you, talk to your independent insurance agent
today or click here