Often, having the minimum required insurance coverage isn't enough. With your auto and home insurance policies, there is a minimum amount that you need to have to cover any accident that you are liable for. When these liability coverage amounts aren't enough, it's time for an umbrella insurance policy, sometimes called an excess liability policy. If you believe you are in need of one, don't hesitate to call us at CLS Insurance Services in California.
An umbrella insurance policy is one that starts to work after your other insurance policy has paid out up to its maximum coverage. The other insurance policy may be a home or auto policy. Umbrella insurance adds liability coverage to both of these at the same time. It is often called excess insurance because the amount of coverage exceeds the liability coverage that is in your home and auto policies.
So, if you already have a home and auto policy, why would you need an umbrella insurance policy? The answer is in the high cost of goods and services today. If someone were to have an accident that involved your home or vehicle, you may be liable for it. However, your existing liability insurance in your home and auto policies are not likely to be able to pay for all of the expenses you're liable for. With an umbrella insurance policy, you don't have to come up with the rest of the money to pay those medical or property damage bills. The umbrella policy has a very high maximum payout, so chances are better that it will pay off the rest of what you owe.
If you are concerned that the liability coverage in your home and auto policies might not be enough, you're probably right. To combat this problem, call us at CLS Insurance Services in California to talk about an umbrella policy.
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