386 295 4252
New Smyrna Beach Liability Insurance
Ecxess Liability Insurance
What Is Excess Liability Insurance?
It is a form of insurance coverage that offers limits which provide more protection than the underlying liability policy that a person already has. It helps by providing higher limits on top of the original liability policy that the insured person has.
The primary purpose of taking out excess liability insurance is to help close the coverage gaps and provide an extra layer of protection if your current insurance policy liability limit has paid its’ limit following a claim.
You can only use an excess liability coverage policy with one underlying policy. So, if the insured has multiple insurance policies through one company, and has excess liability on their car insurance, it is not going to carry over for their homeowner’s insurance. They will need to take out an additional excess liability policy to supplement that coverage.
Umbrella Insurance
What Is an Umbrella Insurance Policy?
Umbrella insurance a type of policy that provides additional liability coverage over and above your current (underlying) insurance policies such as car, homeowner, condominium, watercraft, ATV, Motorcycle or RV. This insurance protects the insured from a large liability claim or judgement that is more than the limits on your underlying policy.
In most cases, an umbrella insurance policy will cover
Umbrella insurance will typically not take care of
Key Differences
The Key Differences Between Excess and Umbrella Insurance
Both umbrella and excess insurance policies to offer coverage above the limits of any underlying coverage. However, the main difference between the two is that umbrella insurance can broaden your coverage, or in other words, extend your coverage territory. An excess insurance policy offers coverage that is above the limits of regular liability insurance, but it does not broaden your coverage as an umbrella insurance policy does.
Not all insurance companies will offer excess liability coverage. That may be because the policy only provides coverage for the same risks that your underlying policy does and because it comes with the same exclusions. An umbrella insurance policy will provide a broader range of liability coverage options not covered by your underlying policy. For example, if you have a homeowners liability insurance plan and you take out excess coverage, you will have additional protection if you responsible for a person falling and becoming injured on your property.
Excess liability coverage will not provide you additional coverage for other claims such as a libel or slander settlement if your homeowner’s insurance policy does not already cover those acts.
An umbrella insurance policy would provide coverage for a broader range of incidents. It would be more likely to help pay for a libel or slander judgement against you that is in connection with the initial bodily injury claim.