North Carolina Umbrella & Excess Liability Coverage
If you are considering an extra layer of liability protection, an umbrella policy may be the answer. Many people are under the false impression that that umbrella policies are only for the wealthy and they are expensive. Actually, it is generally affordable and is not just for the wealthy because anyone can be sued.
The name Umbrella Policy is fitting because in effect it sits on top of your homeowners and auto insurance liability coverage. Your auto and homeowners policies provide at least some dollar amount of coverage should you encounter any legal claims for personal injury or property damage. But what if an accident were to occur and the settlement was for $600,000 and your liability insurance topped out at $300,000? This is where you would have a problem, unless you have an umbrella policy to take over.
Umbrella policies can be written for different amounts, such as $1 million, $2 million or more on top of what your basic policies will pay. The amount of coverage you choose and other risk factors will determine your umbrella policy insurance rate.