Insurance is all about peace of mind, and excess liability insurance takes it to the next level. It works alongside your main insurance policy, most commonly one that covers costs you’d have to pay somebody else rather than your own costs.
How can umbrella insurance protect you?
Use the yellow hot spots and explore how umbrella insurance can help protect against common risks.
Property Damage Liability
You can be held responsible if you significantly damage another vehicle and/or property. Do you have enough coverage to protect yourself from the risk?
Your standard auto policy limit could easily be exhausted if you are found to be at fault. An umbrella or excess liability policy provides an extra layer of protection once your standard liability limits are exhausted. It’s a cost-effective way to ensure the peace of mind you deserve.
Bodily Injury Liability
It’s easy to get distracted while driving. All it takes is an incoming text message, a fussy baby or a little spill of coffee and your eyes off the road long enough to crash into a pedestrian, bicycle or another vehicle. As an owner/operator of the vehicle, you may be held financially responsible for any bodily injuries caused as a result of the accident.
An umbrella or excess liability policy helps extend your coverage to better protect you against these significant costs. It’s the ideal coverage to provide peace of mind, even when the unthinkable happens.
You invite guests over for a barbecue pool party and one of your guests dives into the shallow end of the pool and is permanently injured. They hire a lawyer to represent them and after a long legal battle, you and your family are left financially responsible for their injuries. Do you have enough money in savings to cover your legal responsibilities as well as the legal defense costs?
An umbrella or excess liability policy increases your personal liability limits by adding protection over and above your current auto, boat or homeowners policies - providing real financial value, as well as priceless peace of mind. Excess liability insurance is available either by an endorsement to your homeowners policy or available as separate coverage.
An excess liability insurance policy only pays out if and when your main policy has paid out in full and has reached your coverage limit. The excess policy then kicks in to pay any remaining costs. This means an excess liability policy is less likely to pay out than a standard policy, in turn meaning the premium costs are comparatively lower.
The term “excess liability insurance” is often interchanged with “umbrella insurance” and the distinction between the two can be blurry. Some insurers use the distinction that umbrella insurance can cover some risks and situations not covered by the standard policy, while excess liability insurance simply adds on a higher payout limit. Because such distinctions in terminology aren’t always used consistently, you’ll need to check exactly what your policies offer.
To find out more about how excess liability insurance gives you that extra reassurance, contact us today.