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If
you are ever sued, your standard homeowners or auto policy will
usually provide you with liability coverage which pays for judgments
against you and your attorney's fees. However, in this litigious
world we live, you may want to have an extra layer of liability
protection. That's what a personal umbrella liability policy provides.
It kicks
in when you reach the limit on the underlying liability coverage
in a homeowners, renters, condo or auto policy. An umbrella
policy will also cover you for things such as libel and slander.
If you feel
insecure with the amount of insurance you have, then you should
consider purchasing a personal umbrella liability policy.
For about $150 to $200 per year you can buy a $1 million personal
umbrella liability policy. The next million will cost about
$75 and $50 for every million after that.
Because
the personal umbrella policy goes into affect after the underlying
coverage is exhausted, there are certain limits that usually
must be met in order to purchase this coverage:
- Homeowners
Liability - typical minimum required - $100,000
- Auto
Insurance Liability - typical minimum required -
$100,000/bodily
injury per person
$300,000/bodily
injury per occurrence
$25,000/property
damage
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