We’re Celebrating National Umbrella Day Early With A Personal Umbrella Questionare
An personal umbrella insurance policy acts just like an umbrella…it is a liability policy that fits over your primary home and auto liability coverage. That means if there is a loss, the liability portion of your auto or homeowner coverage is the first to respond. Your California Personal Umbrella or excess liability policy responds only after the primary insurance has paid its limit.
It’s very possible that your primary home and auto insurance limits provide more coverage than you’ll ever need. However, if you have a loss that is not completely covered by your primary policy, that’s when having a umbrella policy pays off.
For example, your 16 year old is driving the family car and causes an accident that involves several cars, injuring a number of people. There is no way your auto insurance policy has enough coverage for all those claims. Or maybe you volunteer to drive kids from your daughter’s first grade class on field trips and you have an accident that’s your fault. If you don’t have enough primary coverage, you can easily be sued out of your personal assets.
Umbrellas generally provide additional liability coverage for the following types of policies:
- Personal Automobile
- Recreational Vehicles
- Personal Liability
Written by: Rhonda Remland
Photo: Denman Agency