How much umbrella insurance do I need?

Many people don’t realize how important it is to have an umbrella policy. Because of the much higher limits, an umbrella policy offers a vastly higher level of protection over a traditional policy.

Once you have decided to purchase an umbrella policy, you will need to start thinking about how much total protection you should get. If you live in Novi or West Bloomfield, MI, you can speak to an agent at Agency Advantage Insurance about your specific circumstances and what the best coverage will be for you.

How Umbrella Insurance Works

You can’t have an umbrella policy unless you have at least one other kind of insurance policy. Your umbrella insurance won’t kick in until the limits on your other insurance have been completely exhausted.

One good combination is auto and homeowners insurance; your umbrella policy will cover you in both areas in the event of a disaster. Whether there is a house fire or a car crash with a very large amount of damages, the umbrella policy will start working as soon as the appropriate policy has maxed out.

Kinds of Protection Offered by Your Umbrella Policy

Umbrella insurance doesn’t just cover damages specific to the original policies. Here are some of the kinds of damages that may be covered:

  1. Significant property damage
  2. Serious bodily injury
  3. Legal fees associated with those claims and others
  4. Landlord liability
  5. Libel or slander
  6. Malicious prosecution

The minimum amount for an umbrella policy is usually $1 million in coverage, but you can elect to have coverage of $5 million or even $10. You will be surprised at how little the policy costs.

If you are in West Bloomfield, MI  and would like the peace of mind that comes with maximum protection, call Agency Advantage Insurance today for a free quote.