Umbrella Insurance 101

MoneyTips

Umbrella policies are aptly named, although they have nothing to do with rain or Mary Poppins. Like an umbrella, these policies form an extra layer of broad insurance protection over and above the liability limits of your existing policies. When properly constructed, they fill coverage gaps in your existing policies and create higher limits for the areas that are covered.

An umbrella policy is a relative bargain in cost per coverage – a policy with $1 million in coverage typically costs around $10 per month, and higher values are available for around $50-$75 per year per $1 million increment. Remember that your insurance premiums could also depend on your credit score. You can check your credit score and read your credit report for free within minutes using Credit M...