In an age of common litigation, those with assets often prefer to be well insured. But the liability coverage on your homeowners insurance is limited to certain kinds of claims as is your auto insurance. Rather than raise the limits on all such policies, it makes sense to carry a single umbrella policy that covers all of these risks.
Because your other policies cover the most common claims, your umbrella policy has few claims and tends to be inexpensive for sizeable amounts of coverage, often in the million dollar class or more.
Related Fool Articles
Recent Mentions on Fool.com
- 7 Types of Homes That Are Hard to Insure
- A Short History of the Breathtaking Cluelessness of U.S. Financial Regulators
- How to Plan Lucrative Saving Strategies Before Quitting a Job
- An Interview with Author Larry Cunningham
- Why Garmin Ltd., Kraft Foods Group, Inc., and Coach, Inc. Are Today?s 3 Worst Stocks
- J.C. Penney or Sears: Which Struggling Retailer Is Better at Retaining Customers?