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If you have insurance, you have mostly heard your agent talk about an umbrella policy.  While it may not seem like a “big deal”, an umbrella policy is critical to have.  A personal umbrella policy is a liability insurance policy with high limits of protection starting at $1,000,000.  They are designed to add a layer of protection added above the liability on your auto, home or boat insurance policy.  If you own a business, you can also purchase an umbrella policy to extend over your current liability limits.   An umbrella is meant to protect you should you be deemed legally responsible for injury to persons or property.  This does not just include personal injury, but also includes non-physical injury such as libel or slander.

In today’s society, law suits and court awards can be extremely high.  These judgements include punitive damages and special compensatory judgments for loss of consortium, pain and suffering and other intangible losses. Liability insurance will pay expenses such as medical bills, rehabilitative therapy, and lost wages to other parties due to the negligence of the policy holder. In the case of a large law suit, an umbrella provides the increased liability coverage if the limits on your existing policy are exhausted. It is meant to protect you, your assets and current and future income from such awards.

For the coverage you gain from having an umbrella policy, they are fairly inexpensive.  Most insurance companies umbrella policies range from $125 – $300 a year.

Want to learn more about umbrella policies and why there are so critical to have?  Contact the insurance experts of American Advantage – Petersen Group in New Berlin, Wisconsin today!