To see why you may find a Maryland umbrella insurance policy a necessity let?s look at what it is. When you buy liability insurance either for your home, business or auto there is a set limit of liability. Most liability insurance policies will have a maximum limit you can purchase. If you are involved in a claim that goes over the limit of liability you have on your policy you will be personally responsible for the difference. This is when Maryland umbrella insurance coverage would come into play. Once the underlying limits have been met, the umbrella coverage will kick in.
Most claims will never reach the maximum limit on your underlying policy. This makes the premium for an umbrella policy is relatively inexpensive; there is just a lot less risk. In most cases your umbrella insurance company is going to have a limit of liability you will have to carry on the underlying policy. This limit is usually the maximum the insurance company will allow you to carry on your standard policy. This is again limiting the exposure for the Maryland umbrella insurance.
When deciding on umbrella insurance you want to make sure you are purchasing the right policy at the right time. This is when it is important to have an experienced insurance agent in your corner. Discussing your personal situation with your insurance agent will enable them to find the perfect coverages for you.
Source: http://www.merrittformayor.com/a-word-from-our-sponsor-on-the-necessity-of-umbrella-insurance/
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