“I have full coverage” – Part VI – Umbrella Coverages
What is an umbrella policy? First, it is extra coverage that comes into play, if and when, the owner’s automobile and/or homeowners’ policy has paid out their limits for a catastrophic injury. Second, it is generally a very low cost product, since it backs up other policies, the risk is reduced. Third, if you ever had an accident and caused serious bodily injury or death, it will protect you and your assets. And lastly, although you must specifically request it, you can include a provision for Under-insured Motorist Protection, so if you or your loved ones sustain serious bodily injury or death, it will be applicable for your own use, as well. Most insurance companies will require that you have your automobile and homeowners policies under the same company, then that company will extend the umbrella over these two policies.