Umbrella insurance backs up the liability part of your home and auto policies, with more limits of bodily injury and property damage.
Here’s an Example
Say you caused a car accident involving several vehicles, and the cost to cover the damages and is $950,000. However, the liability limits on your auto policy are only $350,000. That means you’d have to come up with the other $600,000, your homeowner’s policy won’t help here.
If you had umbrella insurance it would take over where the auto policy left off, paying the $600,000 for you. The same thing could happen if there is an accident at your home. The umbrella insurance would provide the extra protection you didn’t know you needed.
Umbrella insurance is a tremendous deal
A $1,000,000 umbrella policy is dirt cheap coverage, sometimes it’s as low as $150 per year, compared to the costs of increasing your home or auto liability limits. When it comes to the cost vs the amount of coverage, this is a really good deal.
With an umbrella policy, you could extend your liability limits beyond the maximum provided by your underlying policies. In this case, an umbrella policy would provide liability limits above the $350,000 limit of your auto policy, up to the limit you choose for your umbrella policy (typically that would start at $1 million and up to $5 million in coverage).
Have a conversation with one of our advisors for a no-obligation assessment of your insurance needs. We will demonstrate the CalRose Insurance difference.