An umbrella policy is an addition to a homeowner’s policy that extends protection beyond standard liability limits in the event of bodily injury or property damage. Homeowners may consider adding an umbrella to their Princeton home insurance if their lifestyle opens them up to more exposures. For example, if an individual or family does quite a bit of entertaining at home or hosts events regularly, extra coverage may make good sense. The more activity there is in a house, the greater the possibility of someone, someday suffering a mishap.
Additional Protection for Enhanced Properties
Recreational equipment and add-ons to a property increase its value and its potential for fun. They also increase its exposure to risk. Features worth some extra protection may include:
- Tennis courts
- Swimming pools
Not Just for the Wealthy
Some people believe that if their assets are limited, they would not be liable for damages equal to or greater than their net-worth. Unfortunately this is often not the case. After liability limits of a basic Princeton home insurance policy are reached, damages may need to be paid from a retirement fund, savings, home equity or possibly even future income. When an umbrella is added to a policy, it kicks in when the basic liability is met. For those homeowners that would benefit, an umbrella may be comparatively inexpensive. Typically, the addition of a home umbrella costs less than one dollar a day for one million dollars of coverage.