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As a homeowner in Folsom, CA, you may be wondering how much your homeowners’ insurance covers and whether or not you can benefit from an additional umbrella insurance policy. At T.D. McNeil Insurance Services, we’re proud to represent residents of California, whether you’re a new homeowner or an investor looking to extend coverage to additional properties. If you have a home and auto insurance policy, a personal umbrella will extend liability coverage to both policies. It steps in when one or both of the policy liability limits are exhausted. But it doesn’t cover everything. To better understand umbrella insurance, it’s important to understand the restrictions that you may encounter.
Underlying Requirements
Umbrella insurance is not a standalone policy. In most instances, homeowners will already have a homeowners’ insurance policy in place when investing in an additional protective policy, such as a personal umbrella policy. If the basic limits of your underlying policies are not met, an umbrella policy may not apply to the claim. Additionally, an umbrella policy doesn’t create insurance protection where none existed, but it may broaden the protection once an underlying policy reaches its limits.
Liability Only
One of the biggest misconceptions about umbrella insurance is that it will cover physical damage to your home. Umbrella insurance is strictly for liability claims, such as property damage to others, bodily injury, and certain personal injury claims (such as slander or libel cases). Damage to your own home or belongings remains the responsibility of your traditional homeowners’ insurance policy.
Exclusions
Personal umbrella insurance typically excludes:
- Intentional or criminal acts
- Business-related activities
- Professional liability claims
- Certain high-risk assets, such as recreational vehicles or trampolines
Knowing how umbrella insurance works is crucial. If you’re new to Folsom, CA, or the idea of umbrella insurance, T.D. McNeil Insurance Services is here to help walk you through the process. If you’re ready to move forward with your homeowners policy and want to learn more about potential restrictions you might encounter with an umbrella insurance policy, contact us for a consultation and quote.
