When the amount of a claim against you exceeds the coverage provided by your home or auto insurance policy, you are saddled with the prospect of settling this excess liability on your own. Your insurance company will not cushion you against this contingency. However, there is a way out. To overcome this eventuality, you can obtain an excess liability policy, or an umbrella policy.

This policy will give you the required cushion against any liability claim exceeding the amount covered by your underlying insurance policies. For example, suppose your auto insurance policy covers claims of accidental pedestrian injury up to an amount of $100000. If an accident does occur, and a claim of $500000 dollars is adjudicated against you, the insurance company will only pay the $100000 agreed upon, and you will have to pay the balance $400000 out of your personal funds. If you do not have the cash or any other liquid asset, then your home, or some other fixed assets could be at stake. You may even be reduced to a state of bankruptcy. This is where an umbrella policy can help you. An umbrella policy will take care of the excess amount of $400000 dollars that you would have had to pay from your own funds.

The umbrella policy expands the coverage offered by your home or auto policy (as well as other personal lines policies including but not limited to motorcycle, recreational vehicle, watercraft, landlord). You can purchase this policy for coverage of up to five million dollars. Moreover, the premium is very low and you may have to pay just $300 to $400 a year for this coverage.

When the amount of a claim against you exceeds the coverage provided by your home or auto insurance policy or other underlying policy, you are saddled with the prospect of settling this excess liability on your own. Your insurance company will not cushion you against this contingency. However, there is a way out. To overcome this eventuality, you can take an excess liability policy or an umbrella policy.

The umbrella policy does not only cover your cars and homes, but also offers personal injury protection which may include false arrest, false imprisonment, malicious prosecution, defamation, invasion of privacy, wrongful entry or eviction. The terms may vary according to each company, and from one state to another.

The umbrella policy is an excellent way to protect yourself against expenses for claims exceeding the coverage provided by your regular insurance policy. It can be bought for a very low annual premium and proves very helpful in protecting your personal assets from lawsuits and legal action.

If you want an affordable umbrella liability, homeowners, or auto insurance policy, reach out to Insurance of the Heartland in Ansley, NE. Their reliable team can help you find comprehensive coverage for your prized possessions. Visit their website to learn more about the umbrella insurance policies they offer, or call (308) 935-1537 for a free quote