Umbrella insurance is extra coverage from liability for other insurance policies, usually home or auto insurance. Consumers may choose to purchase an umbrella policy if their home or car is more expensive than a typical policy would be able to cover. For example, most car insurance liability policies cover at least $25,000 per person or $50,000 per accident. But if the accident involves a very valuable car, or the victim is willing to pursue legal action, insurance may not even begin to cover the full cost. You may want to hedge your risk by purchasing umbrella insurance to add extra protection to your existing policy. Insurance Claims Basics To receive a payout for an insurance policy, the policyholder must file a claim with the insurance company.
Claims Adjusters and Examiners. Millions of Americans drive a car to get from place to place each day, so it makes sense that auto insurance is one of the most commonly used types . In most states, the law requires drivers to maintain an active insurance policy on any car, up to a certain amount. Most car owners are required at minimum to purchase liability insurance, which protects against damage for which the policyholder is at fault. Liability insurance covers damage to property as well as any injuries sustained in an accident.
In addition to liability insurance, car owners can also purchase coverage for their own vehicle and medical expenses in the event of an accident. For this purpose, liability, vehicle and medical coverage are often packaged together in a single policy. Insurance can also be purchased for other vehicles, like motorcycles, ATVs, boats or RVs, and generally functions similarly to car insurance. Policies for alternative vehicles may have higher premiums if they are considered more dangerous, or might include other coverage options specific to the vehicle.