Quote:
Originally Posted by mswlogo
It’s a good idea to have an umbrella policy.
To cover loose ends.
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Many umbrella policies require underlying insurance to meet the low end of the umbrella. That may necessitate a primary policy on the land.
For example: If you have a $1 million umbrella that starts at $500,000 you would need a policy on your other risks (home, vacation home, cars, boats, airplane, jet ski, bungee park
) that insured you for the first $500,000. That would give you a total of $1.5 million in coverage.
If you have this type of umbrella and don't insure the other risks that could leave you with a $500,000 gap before coverage kicks in.