Umbrella insurance is often misunderstood as a catch-all policy that replaces other coverage. In reality, umbrella insurance provides additional protection beyond the limits of your existing policies.
Advantage Service Insurance, serving Erie, CO, explains how umbrella insurance works and why it matters.
The Purpose of Umbrella Insurance
Many people mistakenly believe that having umbrella insurance means they can cancel their primary policies. However, umbrella insurance does not replace your existing coverage. Instead, it provides extra liability protection when the limits of your home, auto, or other policies have been reached.
Think of umbrella insurance as the final layer of protection. It sits on top of your existing coverage and extends your liability limits for significant claims or lawsuits.
Maintain Your Primary Coverage
The most important thing to remember is this: do not cancel your auto, home, or other insurance policies just because you have umbrella coverage. Your primary policies provide essential protection up to their individual limits.
While many claims fall within those limits, some exceed them. When that happens, umbrella insurance steps in to cover the remaining liability, helping shield your finances from major losses.
