Umbrella Policy

Posted: Sat Jun 30, 2007 05:54 pm Post Subject:

I know this type of insurance - it's very interesting, as to me.

Posted: Mon Jul 02, 2007 06:01 am Post Subject:

Umbrella policies act as a supplement to the liability coverage. It creates an extra layer of protection above the limit of your liability coverage. Umbrella policies offer protection when a lawsuit, big-enough to exhaust your liability coverage, is filed against you. It will protect your assets from being sold towards paying for the damages.

Regards,
Juanita.

Posted: Mon Jul 02, 2007 06:34 am Post Subject:

IMO every policy holder should consider obtaining umbrella policies. These are less expensive and often come with high deductibles. But before buying, you should compare the costs involved in raising the limit of your existing liability coverage and purchasing the umbrella policy. Because sometimes merely raising the limit of your policy is more economic than purchasing a new one.

Posted: Mon Jul 02, 2007 02:47 pm Post Subject:

While having an umbrella policy can be good... what people need to know is that it's possible to have too much insurance. I'd venture to say that 99.99999% of the people out there don't need an umbrella policy. They are inexpensive for a reason. They are almost never used. Very few claims against people go into court. Lacking a court judgement against a person, plaintiff's (read plaintiff attorneys) almost always settle for no more then a person's liability policy limits, even when the claim is worth much more. This is because they know they would probably never get more then the person's insurance policy so why waste time and money trying to get a larger judgement on paper.

Those that should consider more insurance should do so to protect their _assets_, not just to have a high limit of insurance. If you need a higher limit, I'd agree with Fatman... consider the cost of just raising your liability limit on your existing policy. It's probably even cheaper then getting a separate umbrella policy.

Posted: Tue Jul 03, 2007 01:16 pm Post Subject:

*I'd venture to say that 99.99999% of the people out there don't need an umbrella policy.*
Why not? You can't be sure something will not happen. Unexpected things happen not often, but when they do - you are in a big trouble. If you have some extra money, better to spend them on insurance, than put to the bank.

Posted: Fri Jul 06, 2007 08:49 am Post Subject: Umbrella Policy - DIC/DIL

I have seen this policy often in insurance program for multinational companies, which have many subsidiaries or affiliates around the world.

Each local operation has local policy and its limit is lower than required from the standpoint of home office. It is because local rate is higher than that of home office or that they do not know what kind of claims will happen based on the local regulations.

It is called difference in condition(DIC) or difference in limit(DIL). It could act as excess policy or comprehensive cover.

byo

Posted: Fri Jul 06, 2007 11:43 am Post Subject:

Thanx, friends! You all have poured-in very valuable information on this topic. I highly appreciate your sincere efforts. Hope it will work as a guideline and will help all of us in the future also.

Thank you again for participating in the ampminsure forums. Hope to experience more participation from you all.

Regards,
Lakeman