A lot of people assume that if they have auto and home insurance, they already have all the liability coverage they need. However, this doesn't always apply in certain cases. With personal liability umbrella insurance (aka “excess liability insurance”), you get an extra layer of insurance protection – something that can be critical if a loved one is injured in an auto accident, at home, or on your property.

To determine if your current insurance is enough, consider the value of your home, major assets, and the value of any investment portfolios or retirement savings accounts you own. After getting the total value of all of these items, check how much liability coverage you are getting from your home and auto insurance policies. Can your current policies provide sufficient cover for your assets?

Most of the time, the answer to the above question is “no.” If this is the case, it may be time to consider getting an umbrella policy.

Benefits of Umbrella Insurance

To own umbrella insurance, you are required to have standard homeowners, auto, or watercraft policy first. The umbrella policy takes effect once the regular coverage is exhausted.

If you have umbrella insurance in California, you can use it to assist in the claim and payment processes, as it is designed to cover remaining costs after all other insurance has been exhausted. It may also protect you against cases of libel, vandalism, slander, and invasion of privacy.

This benefit of umbrella insurance makes the handling of claims and payments so much easier.

Let’s say you are renting a unit in an apartment building. One day, you leave the stove on by accident, which then causes a fire that spreads and burns your apartment as well as the apartments of some of your neighbors. This means you are liable for the damage to the building and the loss of your neighbors’ possessions.

Since a majority of renters’ policyholders get $100,000 in liability coverage, how will you pay for the other damages if your renters’ policy can only cover a percentage of the total? In this scenario, you will be responsible for paying the remaining total from your own savings.

But if you have umbrella insurance, it can protect you and your family by shouldering the remaining costs of damages not covered by the renters’ policy. With this additional coverage, you can keep your personal assets safe.

Candidates for umbrella insurance include people with considerable assets or who own potentially hazardous things, or who engage in activities that increase their risk of being sued.

Need Umbrella Insurance?

If you want to know more about umbrella insurance and how it can benefit you, please contact Crescenta Valley Insurance at 818-248-4500.

We’ll be happy to discuss your options based on your unique circumstances.

Get a Free Umbrella Insurance Quote