ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The umbrella policy will provide assistance with damage to personal belongings or criminal accusations.
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The umbrella policy will provide full coverage for any claims made.
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The umbrella policy will cover costs left over from your basic liability coverage.
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None of the above
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Detailed explanation-1: -Umbrella insurance policy is the extra liability insurance as the primary role is to cover liabilities that the existing policy can’t/don’t cover. They help protect assets and, as such, are suitable for people with a huge quantum of expensive assets.
Detailed explanation-2: -Say you have an umbrella policy with $1 million of liability coverage, and someone sues you for that full amount. If a court finds you liable, your insurer would pay the $1 million plus provide your legal defense or cover your fees. You might have to pay a “retained limit, ” which is similar to a deductible.
Detailed explanation-3: -Umbrella insurance provides coverage beyond the limits of your other insurance policies, or for claims that may not be covered by liability policies. Umbrella insurance generally provides liability coverage for: Injuries. Damage to property.
Detailed explanation-4: -An umbrella personal liability policy is extra liability coverage which goes beyond the limits of the insured’s home, auto or other liability coverage. It provides an additional layer of security to those who are at risk of high loss if they injure someone else, or someone’s property.
Detailed explanation-5: -Umbrella insurance provides additional liability coverage-over and above the limits on your auto and other personal liability policies. This extra protection is available in $1 million increments up to $10 million.