Should You Purchase an Umbrella Insurance Policy?

Umbrella Insurance in San Diego, CA

Umbrella insurance policies are considered an extra layer of protection. This type of policy is added to other policies and is typically utilized when the current insurance coverage is exhausted and your liability is involved. Here are some pros and cons to consider if you’re thinking about purchasing an umbrella policy for these different types of insurance.

Homeowners Insurance

When considering umbrella coverage for homeowners insurance, one of the major benefits would be the low cost, which can vary depending on your current policy and your desired level of coverage. An umbrella policy can give you peace of mind that you will have adequate coverage in the event of lawsuits and claims involving your home. A potential drawback of umbrella coverage is that a well-written homeowners insurance policy may provide more than adequate coverage at a reasonable price and the umbrella policy would not even be used.

Auto Insurance

Umbrella policies are typically inexpensive when used for additional automobile coverage. However, many cheap Vista car insurance policies specifically exclude punitive damages. Since legal settlements often exceed the auto insurance coverage, an umbrella policy may not be useful unless it covers these types of damages.

Business Insurance

Many umbrella policies cover situations that are not covered by a traditional commercial insurance in Vista. Some might cover certain “acts of God” that are excluded in other policies. However, similar to auto policies, umbrella coverage does not necessarily cover certain business liabilities like dereliction of duty. When purchasing umbrella coverage for a business, you will need to provide a significant amount of information to the insurance company just to receive an accurate quote.

Health Insurance

Health insurance umbrella coverage is also typically inexpensive for the amount of coverage offered and can provide peace of mind if you are worried about having a catastrophic accident or developing a chronic disease. Some umbrella policies also cover costs like lost wages when you are unable to work because of your health. A major con would be paying for this type of coverage and never actually needing to use it.

To learn more about homeowners, business, health, and auto insurance in Vista, call American Tri-Star Insurance at 760-758-1600. Whether you want to inquire about an umbrella policy or something a little simpler, our agents can help you find the right insurance to meet your needs. We hope to hear from you soon.