General insurance provides full liability protection for individuals and their assets. These policies go beyond the limits of a primary home and auto insurance policy, and they also cover the gaps in those policies. The high limits of an Umbrella policy protect an individual in the event of a claim for a large dollar amount. Most Umbrella plans start with a million dollars in coverage, but can be purchased with much higher coverage limits.
For example, a general policy would be paid in the event of a car accident in which someone was seriously injured or killed. In the case of a serious traffic-related injury, liability payments in the court system have reached millions of dollars. Since most people only carry $ 100,000 per person and $ 300,000 for accident liability limits, it’s easy to see how necessary a blanket policy is for financial health. Without that coverage, the party at fault is responsible for the remainder of the payment after the coverage limits of the policies have been exhausted. So if you cause an accident that results in $ 800,000 in damage to one person, and you only have liability limits of $ 100,000 per person and $ 300,000 per accident, you will be stuck paying $ 700,000 of the bill.
The need for blanket coverage is great, though largely unknown to many people. Most people who have a net worth of less than $ 500,000 assume they don’t need such a high liability limit. What most of these people don’t realize is that in case of claims for a large amount of dollars, not only can real estate be taken, but future earnings can also be garnished to pay the rest of the bill later. insurance limits have been met. Exhausted. This makes Umbrella coverage a crucial coverage for any earner.
The cost of this type of coverage is relatively low. The premium depends on the risk, of course, but the average annual cost per million dollars in coverage is $ 200-300. The amount of liability coverage covers your existing policy coverage (that is, if you had a liability limit of $ 500,000 on your home and a million dollar blanket policy, you would have coverage up to $ 1.5 million). General insurance can also fill gaps in liability coverage where your home or car policies may not provide coverage. For example, the blanket policy may provide coverage in the event of defamation, false arrest, defamation, or invasion of privacy. In this happy world we live in, many are discovering that comprehensive coverage is better than trying to save a few dollars.