Umbrella Vs Higher Base Policy

[Milkman1265]

i'm noticing that a lot of my policies i get are 1/2MM with 4mm umbrella...

why not just get a 5mm base policy?

what is the pros and cons of a 5mm base vs 1/2mm with 4mm umbrella?

 

[djs]

Umbrellas tend to have broader coverage than the base policy does.

For instance, on a commercial policy, it can cover both your general liability and your commercial auto liability, which can come in handy.

For personal umbrellas, same thing. It extends your personal liability (usually covered on homeowners) as well as your autos, boats, RV's, limited rental properties, teachers liability, childcare (maybe), etc. It's usually much cheaper than trying to extend every policy you have.

You won't have a lot of umbrella claims, which is why they are pretty inexpensive to buy. I mean seriously, $1M in coverage for what? $300 annually? Because of this, a lot of people don't see the value, but when you need the coverage, its the best money you spent.

Also, the real value in an umbrella is the legal defense coverage the insurance company will pay for on your behalf to not have to pay out $1M+ in liability claims!

Dan