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In Reply to: umbrella ins. posted by Ambbrose Corey on June 29, 2001 at 23:18:11:
"Umbrella" insurance is the nickname given by the property and casualty insurance industry for a personal liability policy. It goes beyond the coverage usually associated with property insurance. Essentially, if you are sued for something that happens to someone on your property due to your negligence, an "umbrella" policy will pay the claim up to a much higher limit that you have on your home insurance, typically $1,000,000. For example, someone trips on one of the lawn sprinkler heads and breaks his neck, leaving him as a quadraplegic (not likely, but, hey, it happens). Your regular property insurance covers claims, let's say, up to $250,000, but this guy's lawyers sue for a million. Without the umbrella policy, you'd have to pony up the $750,000 beyond your basic insurance coverage. With the umbrella policy, the insurance company pays. That's an over simplification, but that's basically it. The coverage is fairly cheap, usually under $200/year, depending where you live and what company you go with. Hope this helps, Paul