What is umbrella insurance?



It seems that many people will be curious about the concept of umbrella insurance. In fact, umbrella insurance is a comprehensive and high-value accident insurance. In addition, umbrella insurance is also an additional liability insurance. When the ordinary liability insurance protects the rights and interests of the policyholder, it provides additional protection for the policyholder. Umbrella insurance is committed to protecting the insured's existing property from loss. When the existing insurance is not enough to support the compensation, umbrella insurance can help in the excess.

The umbrella insurance covers a wide range of car, house and other accidents. In addition, the amount of umbrella insurance is very high. As a result, policy holders can handle some major accidents calmly. Another feature of umbrella insurance is that it protects the property of the insured. Umbrella insurance reduces risk by preventing the insured person's home and future wages from being used as collateral.

Umbrella insurance can play an important role in many specific situations. To take a simple example, an insured person suffered a serious traffic accident and his car was badly damaged. His car insurance, however, has a maximum payout of only $100000, and the auto repair shop charges $200000 for repairs. If the insured does not have a large fixed deposit, he can only continue to pay the additional $100000 through real estate, car and fixed assets. In the worst case, part of his future earnings would even have to be used to pay for repairs. Fortunately, if the insured person bought an umbrella insurance policy, he could use the umbrella insurance to cover the excess of $100000.

However, it should be noted that umbrella insurance can not be used as general insurance. People who buy Umbrella insurance can only use umbrella insurance after an accident when the amount of insurance they need to pay exceeds a certain limit.


In some special cases, umbrella insurance can also solve the problems for the policyholder. For example, an applicant invited some friends to his home. Unfortunately, several children fell down in the home of the applicant. At this point, umbrella insurance can be used to pay for the treatment of these children. In addition, some people accidentally forwarded other people's articles on the Internet, resulting in the need to pay infringement fees. At this time, they can also use umbrella insurance to solve these problems.

The purchase cost of umbrella insurance is not fixed. The cost of umbrella insurance will be affected by many factors and conditions. Some people who live in rich areas, have a lot of cars and savings may pay a large amount of insurance premiums. In general, there is a positive correlation between the umbrella premium and the amount of insurance purchased. The more you buy, the greater the amount of compensation you can get.

In short, umbrella insurance can help people to expand the business scope and payment limit of the original insurance. Umbrella insurance can protect the insured from great risk behaviors.