In addition to a homeowners insurance policy, an umbrella policy provides vital coverage for people who own a home, an auto mobile, and/or a boat. If you cause an accident, do you have enough coverage from your current policies to protect you? With limited coverage availability on your homeowners, car, and watercraft insurance, these policies can be easily exhausted if you are slapped with a lawsuit. Umbrella policies are designed to give added liability to the limits of home, auto, and boat insurance coverages. An umbrella policy will kick-in when these resources have been depleted and are not able to completely cover the costs of your accident.
Homeowners insurance is critical and if you carry a mortgage is a requirement by the mortgage company, and rightly so. If something were to happen to your home and it was destroyed completely, someone would still need to pay for it. So, if homeowners insurance were not required, you would have to pay for a home still that did not exist. Learn more about insurance policies by exploring the following link(s):