How Does Umbrella Insurance Work?

When you have insurance for your home and vehicle, you might not have the full coverage you need. Home and auto insurance policies often come with less liability coverage than you really need. Medical and vehicle repair costs have been rising, and you might not have enough liability coverage to keep up with those costs. Contact us at McCormick Insurance Inc. in Pembroke Pines, FL to get umbrella coverage to fill in the gaps.

More Liability Coverage

Having home and auto insurance is vital for protecting your most significant assets. However, a severe accident can wipe out all of your liability coverage and more. After your policy has paid as much as it can, there may still be medical and other bills left over that you have to pay. The best way to protect yourself is to get more liability coverage. However, getting more coverage on your auto and home policies can be prohibitively expensive. A far less expensive option is to get umbrella insurance to add liability coverage to both policies.

Paying the Overage

The first thing that happens after an accident is that your auto or home policy, whichever is relevant, will come in and pay for the resulting bills of the other party. However, once the policy has paid out its limit, anything else doesn’t have to be paid by you when you have an umbrella policy. When there is an overage left by your home or auto policy’s limit, your umbrella insurance comes in and pays for those leftover bills. This can save you an enormous amount after an expensive accident, and it isn’t costly coverage.