ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If everything you own, including savings and investment accounts, adds up to worth more than $1 million, then that would be the minimum umbrella policy you need. If you own luxury automobiles, recreational vehicles or watercraft, and a large home-you may need $2 million or more in extra coverage.

Detailed explanation-2: -Umbrella insurance is extra liability insurance beyond what’s on your existing policies. An umbrella policy can pay what you owe if someone sues you and you’re found to be at fault. The cost of umbrella insurance typically starts around $200 per year for $1 million of coverage.

Detailed explanation-3: -Umbrella insurance is extra insurance that provides protection beyond existing limits and coverages of other policies. Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations.

Detailed explanation-4: -Personal umbrella insurance policy in action Here’s an example of how a personal umbrella policy works: If you’re at fault in a car accident that injures another driver, your regular auto insurance may cover the other driver up to the limit you selected, say $250, 000.