If you are familiar with umbrella insurance, you might assume that excess liability coverage is just another name for the same type of policy. While this is an understandable assumption, the two are technically different. Here, we at L & S Agency Inc. explain the basics of how this coverage works and who it is best suited for.
The Basics of Excess Liability vs. Umbrella Insurance
Excess liability coverage is more restrictive than umbrella insurance. As the name suggests, excess liability provides additional protection but is limited to the terms of your existing policy. For example, if you are involved in a car accident and cause $300,000 worth of damage, but your car insurance policy only covers $100,000, excess liability can cover the remaining $200,000 to protect your personal finances. However, excess liability does not extend coverage beyond the scope of your primary policy.
Umbrella insurance, on the other hand, offers broader protection. For instance, if you are in a car accident and make a flippant remark about the other driver’s skills, and they decide to sue you for slander, umbrella insurance may help cover legal fees if your car insurance policy does not include slander coverage. Umbrella insurance provides additional protections on top of your current coverage, making it more versatile.
Which One Do I Need?
The choice between excess liability and umbrella insurance depends on the type of policy you have and your specific needs. If your primary policy is comprehensive, excess liability may be sufficient. However, if you want broader coverage for scenarios not included in your existing policy, an umbrella policy is a better option.
At L & S Agency Inc., we understand that insurance policies can be complex. That is why we help residents of Buffalo, NY, understand their coverage options and make informed decisions. If you are ready to go the extra mile for protection, contact us today for a quote!
