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What Is An Umbrella Policy?

What Is An Umbrella Policy?

Almost everybody has had health insurance questions at one point or another. Dealing with insurance companies can be a hassle and leave you with even more questions than before. The key is finding a company like Insurance Center Associates who can help you understand your policy and its coverage in the San Pedro and Torrance, CA areas.

One term or policy you may not have looked into is an umbrella policy. What is an umbrella policy? As the name suggests, this policy—also known as excess liability insurance—is kind of a fail-safe for all of your assets. If you’re ever sued and the damages exceed the limits of certain car insurance and homeowners insurance policies, an umbrella policy covers the rest.

So, do you need this type of coverage? Let’s look at some of the situations where you might need an umbrella policy and how you can obtain one.

Who Needs Umbrella Insurance in San Pedro and Torrance, CA?

The idea of who needs this style of policy is actually easy to understand. It’s not something that everybody should have—only those people who need a little bit extra protection, especially when it comes to lawsuits. This includes:

  • People who have significant assets outside of owning property or cars

  • Anyone worried about liability claims as they travel outside the U.S.

  • People who own items that could cause personal injury such as a pool or trampoline

  • Landlords

  • Coaches

  • Board members of non- and for-profit agencies

How The Policy Works

If you do choose this type of coverage, you’re basically covering any damages you have to pay in excess to your standard insurance policy.

For example, this policy would work due to a car crash. Let’s say your standard car and medical insurance covers all of the damages on your car plus any medical bills you incur.

But then the other driver decides to sue you because they can’t work. Even at $100,000, you would have to pay that yourself. An umbrella policy protects you in moments like this, covering the payout to the other driver.

Do You Need It?

It’s easy to make the case that almost anybody could benefit from this policy from the information above, but it’s not always that simple. Insurance Center Associates in San Pedro and Torrance, CA can break down your assets, look at your everyday life, and help you better understand if an umbrella policy is right for you.

From obtaining an umbrella policy to understanding deductibles and copays, give us a call today to see how we can help.