Understanding California Umbrella Insurance

Umbrella Insurance is a personal policy that protects against landlord liability claims and covers property damage, bodily injury. It provides additional coverage to prevent you from paying the remaining balance that you need. It’s your home, bank account, or other personal property’s protection.
In many cases, in million-dollar increments, Umbrella policies are available from $1,000,000 to $5,000,000. Moreover, it is not a requirement, but it offers additional protection for unfortunate accident situations.

Who Needs Umbrella Insurance

Umbrella Policy is a possible benefit for everyone. For this reason, everyone can encounter accidents anytime that result in expensive bills. An Umbrella policy prevents costly bills for other people’s medical and legal expenses if you’re liable. 

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

For instance, if you’re guilty of a car accident that causes injury to another driver. Auto Insurance will cover it up to the $250,000 policy limit. It happens that the limit isn’t enough to reimburse the hospital bills of the driver. 

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

Sometimes, people refer to Excess Liability Insurance as Umbrella Insurance, but they are two different insurance kinds. Excess Liability Coverage is not available on all insurers, and it only provides coverage for similar risks with underlying policy. Additionally, it comes with similar exceptions.

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?
To purchase Umbrella Insurance, having Homeowners or Auto Insurance Policy is mandatory. Umbrella Insurance is additional coverage in a policy, and it’s impossible to purchase it separately.
Also, work with an independent insurance agent to guide you in purchasing the correct price. With this in mind, you can have a package of Excess Liability Coverage with Home or Auto Insurance to salvage premium.
Your Umbrella Insurance doesn’t cover your personal property, business losses, and criminal intentions. It covers additional costs if you’re liable for someone else’s property. But it doesn’t cover any properties you own, your business losses, and criminal acts. 
For example, if your sink overflows, causing your drywall to destroy your house, it won’t cover your damages. But if the flood ruins the property of your neighbor’s basement, Umbrella Insurance will cover their damages. It’s coverage due to your negligence and avoids a financial loss.
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 Excess Liability Coverage policy to ensure that liability coverage is useful. By all means, call a local agent.