Understanding California Umbrella Insurance
Who Needs Umbrella Insurance
For example, if you’re responsible for a guest’s injury while skating in your skating rink. Or if you’re guilty of a car accident that causes injury to a third-party. Moreover, it can save you from spending on expensive coverage when these kinds of situations arise up to your policy’s limit.
Additionally, it covers not only you but also the members living in your household. To enumerate your children, spouse, and other relatives in your house who don’t have Property or Auto Insurance for themselves. For example, if your spouse drives and bumps into someone, Umbrella Insurance will cover up for them too.
How Personal Umbrella Insurance Works
In this case, if the injuries of the driver are very severe. You may be legally liable for damages above $250,000 that your Auto Insurance covers. He may even sue you, and it can affect your assets.
What if the driver is a professional with a high salary? And causes him injuries making him unable to work for six months? Then sues you $1,000,000 to cover up for it. In this case, your auto policy’s liability coverage can only reimburse $250,000. But how about the $750,000? Your Umbrella policy provides the excess payment that your standard policy cannot.
Umbrella Insurance is Different from
Excess Liability Insurance
For instance, if you have Excess Liability Coverage on the policy of your Homeowners Insurance. For this reason, you have a high chance of getting additional protection if you’re guilty of a guest’s injury. But you also probably won’t benefit from libel or slander settlement coverage because standard Homeowners Liability Insurance doesn’t cover defamation.
How to Purchase?
Overall, Umbrella Insurance is usually an additional great liability coverage for cases that your underlying policy covers. It protects
against risks from you and your family or any other members residing in your household. It covers claims or lawsuits that exceed
your other insurance policies like auto or homeowners' insurance.
For instance, Umbrella Insurance can pay for slander or libel claims against you. Although having standard homeowners' liability
coverage or even additional excess liability coverage can't. Suppose you have any questions about your personal Umbrella
Insurance policy to ensure that liability coverage is useful. By all means, call a local agent.