Insurance is supposed to provide peace of mind during the good times and some financial support during the bad times. In some cases, such as homeownership, it’s not strictly legally required. In other cases, like automobile use, the majority of states need some kind of insurance to be in place before you can legally get behind the wheel.
However, even with the standard forms of insurance available, there is an extra added financial security level. This is known as umbrella insurance, but why is it even offered when there are already things like home, auto, and even flood insurance?
The general idea behind home or auto insurance is that if an accident occurs, that will require some kind of repair, insurance can step in and provide some money.
In the case of auto insurance, this coverage extends to both the car owned by the person with the policy and possibly the other vehicle involved in an accident if a policyholder is found at fault for the accident.
However, this idea of repair money being made available after an accident does have limits.
Home insurance, for example, generally covers typical accidents, such as a fire or even damage from a storm, but it may not cover damage from a flood unless the policyholder has specifically taken out additional flood insurance.
Umbrella insurance in California covers a much broader range of possible situations.
For example, the majority of standard insurance policies won’t cover liability. That is to say, if you get sued and the lawsuit finds in favor of the plaintiff, the money you pay will come out of your own finances.
However, umbrella insurance can cover the possibility of liability. So if someone on your residential or commercial property slips, falls, and is injured. As a result, umbrella insurance can help in these situations, where typical home or commercial insurance would leave you on your own.
It can even cover more abstract concerns, such as a lawsuit against someone who writes reviews or even provides protection for those doing volunteer work. For activities where injuries may be more common, such as sports or skydiving, umbrella insurance can also be helpful.
One of the best things about umbrella insurance is that it’s not fixed to a particular type of insurance. Umbrella insurance is available for property insurance like homes. Still, it’s also available for auto insurance and even watercraft if you’re a fan of boating.
Umbrella insurance is not just helpful in protecting people from liability; it can also step in when conventional insurance isn’t enough.
So if the damage to a home or a vehicle exceeds what the home or auto insurance can pay out, umbrella insurance provides the extra boost that can provide additional coverage for financing repairs.
If you’d like to know more about how umbrella insurance can provide that added layer of protection and support, we can help.
Contact Panorama. We can assess your insurance situation and see how umbrella insurance can make it even better.