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Umbrella Policy

Members Insurance Advisors

If you're interested in an extra level of liability protection over what your other insurance policies would cover in the event of an accident, you may want to consider purchasing additional liability insurance.

An Umbrella Policy is pure liability coverage over and above the coverage afforded by the regular policy, and is sold in increments of one million dollars. The term "umbrella" is used because it covers liability claims from all policies underneath it, such as autos and homeowners policies. Once the liability limits are exhausted on your home or auto or other policy, your umbrella policy takes over. For example, if you have an auto insurance policy with liability limits of $500,000 and a Homeowners policy with a limit of $300,000, then with a million dollar umbrella, your limits become in effect, $1,500,000 on the auto policy and $1,300,000 on a homeowners liability claim. Umbrella insurance provides broad insurance beyond traditional home and auto. It also provides coverage for claims that may be excluded by other liability policies including: false arrest, libel, slander, and liability coverage for rental units you own.

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