Many people believe that because they have current auto insurance, they do not need an umbrella policy.  This is not the case.  Your insurance policy will only cover a certain amount of the damages that you have caused due to an auto accident.  Unless you have tens of thousands of dollars to spare, which many individuals do not, an umbrella policy would be great to have in this situation.

You may be under the impression that an umbrella policy can replace your vehicle and home, should damages occur.  However, this is not the case.  For these events, auto and home insurances cover the initial instances but an umbrella policy can cover expenses of an auto accident that you have caused or a homeowner claim that may exceed your auto or homeowner policy coverage limits.  You should acknowledge the fact that activities that are related to business will be excluded. And also know that an umbrella policy can also provide personal liability coverage world-wide while traveling.

Is there a reason why more individuals do not have an umbrella policy?  YES!   Often people do not prepare for “worst-case” scenarios because they do not believe that the worst could happen to them.  Once people find out that obtaining an umbrella policy is generally not that expensive to add typically $1 million in extra protection, above and beyond the auto and home policy coverages, it is appealing to add this extra layer of protection to the family insurance portfolio.

The most important thing about insuring yourself and/or your family is to review your existing policies annually.  There are many different determining factors that might require you to change/update your current insurance coverages, or to make a decision to get an umbrella policy such as getting married or divorced, remodeling your home, the need to add or remove family members from policies due to life changes, etc. For more information on umbrella insurance here in California or to just do a no-obligation review of your current insurances, contact Randy Jones Insurance today!