How Does Umbrella Insurance Work?

Getting enough coverage is important, and many people discover that they aren’t as well-insurance as they thought they were. When people have an auto policy and a home policy, there may not be as much coverage in them as is needed. If you have these two policies, you can get more coverage by adding an umbrella policy These policies are an extra blanket of insurance protection so that you’re well-covered. To get your umbrella policy, call us at Allied Brokers Insurance Agency Inc. in Palo Alto, CA.

Extra Liability Insurance

Your auto and home policies each have different coverage types, and one of those is liability coverage. For a home policy, this pays for an accident in which someone from outside the household has an accident and has medical bills. Your auto policy has the same in case someone is injured in a car accident. The problem comes from these policies having too little coverage to pay for a serious accident. These policies often have little liability coverage, and that could leave you on the hook for paying for the high cost of medical bills.

Covering an Accident

Once an accident with injuries has happened, your auto or home policy will be the first one to come in and pay for the medical bills. If you don’t have umbrella insurance, this may pay only a small amount and leave you with everything that’s left over. This can be a large amount with the high cost of medical treatment. When you have umbrella insurance, it comes in after your home or auto to pay what’s left after that policy has maxed out. This covers your overages so you don’t have to.