Policies typically start at $1,000,000 of coverage and would respond in the event that the underlying limits on the auto or home policy are exhausted after a serious claim. For example, if a driver has an auto insurance policy with a $300,000 limit of liability coverage, a $1,000,000 umbrella policy would pay for any injuries or medical treatment up to the policy limit caused by the driver that surpass $300,000. In the absence of an umbrella policy, if the underlying limits were to exhaust in a claim, the insurance carrier has no more duty to defend or settle on behalf of the insured, potentially bringing personal assets into play from a lawsuit brought on by the third party.
It is often recommended to carry an umbrella policy due to the value they bring to a policy holder. For as low as $150 per year, you can receive another $1,000,000 of liability protection and keep your personal assets out of play, as well as provide strong coverage for anyone you are deemed responsible for in the event of a serious claim.
Stolly Insurance Group is an independent agency that can offer comparative quotes with many different excellent rated insurance carriers that offer these products. Call our office to speak with an agent today.