Auto Home Insurance
What umbrella insurance covers above your auto and home limits, how the underlying-limit rule works, who needs it, and why it costs so little.
1
An umbrella policy sits above your auto and home liability limits and takes over when they are exhausted.
2
A million dollars of extra liability typically costs a few hundred dollars a year, because claims that large are rare.
3
You need it if a judgement above your current limits would reach assets or future income you cannot afford to lose.
4
Insurers require you to carry high underlying limits first. That requirement is itself the most valuable part.
Typically a few hundred dollars a year for $1 million of coverage, with each additional million costing progressively less.
Possibly. A judgement can be collected from future wages in many states, not just current assets, so a young high earner with student debt and no savings can still be exposed.
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