Umbrella policy
An umbrella policy is a supplemental insurance that kicks in when your basic policy has paid its limit on your claims. While the chances of facing a large claim may be slim, an umbrella policy is a life-saver when it comes to protecting you from potential financial catastrophe.
If you have a mortgage loan, it’s likely that your home is insured for its replacement cost. However, even if your home is likely to be fully covered, you may not have the same protection. A liability lawsuit used against you could be eat a potentially large hole out of your pocket. That’s where an umbrella policy for excess-liability coverage comes in handy.