Contracts Work Together
Suppose your own risk inclusion under your property holders protection maximizes at $300,000.
You likewise have an individual obligation umbrella insurance contract that maximums out at $1 million.
For a covered incident, you are sued for $800,000, and the plaintiffs win.
You’ll initially pay your property holders protection deductible, say $1,000.
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Then your mortgage holders insurance will pay the following $299,000 of the judgment, which gets you to that contract’s $300,000 greatest.
The remaining $500,000 will be covered by the umbrella policy.
You will not need to concoct that half-million from your own resources — because of your high measure of far reaching individual responsibility inclusion.
