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One of the biggest concerns clients have when trying to decide on umbrella insurance, is wondering how it is different from standard liability insurance. While it might look similar on paper, there are some differences that you need to keep in mind so you know how to move forward with umbrella insurance.
Standard Liability
The first thing to keep in mind is that standard liability has caps with your policy, and will not go over that number. It is the initial liability policy that is attached to your insurance, and is used first when a claim is filed. When you need more financial protection than what that can offer you, then an umbrella insurance policy steps in to cover what the standard liability would not cover, if you have enough in your policy for that.
Umbrella Insurance
This is a supplemental liability policy, chosen at your preferred amount, to cover any financial expenses that your standard liability doesn’t cover. This keeps you from having to freeze and sell assets to cover any required expenses.
Which is Required?
When it comes to auto insurance, commercial insurance and home insurance, standard liability may be required for you to carry in your policy. At no point is umbrella insurance required, but it does come highly recommended.
How Much Umbrella Insurance Should I Get?
Based on the value of your personal property, business property, or anything else that can be frozen and used to cover damages, you want a policy that covers that amount. It is also a good idea to add a little extra, at about 20 percent for future expenses.
If you are in the surrounding area of Katy, TX and you have more questions about comparing umbrella insurance to standard liability insurance, contact us today at the All Around Insurance Agency. We look forward to assisting you with your questions and your policy.
