You may be wondering why you need a general insurance policy when you already have auto and home insurance, but as your income and assets grow, you need more protection for them. General insurance is a form of coverage that complements all other policies. The main objective of this policy is to safeguard your personal assets from any unforeseen event, including a tragic accident caused by you.

General insurance is considered one of the best ways to cover liabilities that may be unusually large and exceed basic policy limits.

Umbrella Insurance Policy Coverage

A general policy grants an additional excess of liability above the expectations of your fundamental policy. By excess liability, we mean coverage of one to five million dollars can be provided by the insurance company. Excess liability grants compensation for the following.

Legal defense cost for a covered loss, such as attorney fees and associated court costs.

Additional protection for your primary auto policy and auto-related liabilities

Personal liability compensation for your property on or off the premises.

Worldwide coverage for car use abroad, no matter where you go.

Compensation for non-commercial liabilities associated with personal injury, including libel, slander, false arrest, or wrongful eviction.

Coverage for third-party claims regarding personal injury, property damage, members of your family, or hazards on your property.

Cost of Coverage of an Umbrella Policy

General policy coverage typically starts at $150 to $200 for a $1 million policy. Your coverage depends on the premium amount. The premium amount increases if you decide to increase your coverage. However, increasing the policy limit to $2 million and getting twice the coverage will not double the cost of the premium.

Importance of general policy

Your home, car, retirement accounts, investments, as well as your regular savings and checking accounts along with your future income are considered valuable assets. If you are sued for a large amount of money and you do not have sufficient liability insurance or a general compensation policy, then all of your assets will be exposed. For this reason, you should consider purchasing a general insurance policy, as it helps prevent the possibility of financial damage due to an unforeseen accident or a single misstep.

Where can I get a policy?

You can buy general insurance coverage from various insurance companies and agents around you. But one of the best ways to get general coverage is through a credible independent agent or independent broker.