It is always wise to have adequate protection and coverage in place. This is so you don’t have to dig through your savings and end up ultimately broke. This is where umbrella insurance comes in. What is umbrella insurance, and who does it benefit?

What is umbrella insurance?

Umbrella insurance is essentially an extra type of liability insurance. To get umbrella insurance, you must have a base insurance policy. You will need home or auto insurance, depending on what needs to be covered. There are specific requirements to qualify for umbrella insurance. You have to have a certain amount of coverage for auto insurance or a specific minimum of coverage for home insurance. After the maximum liability costs on your base policy are depleted, your umbrella policy kicks in to pay the rest of your liability charges.

Who does umbrella insurance benefit?

Umbrella insurance is not suitable for everyone. Some people can get by with just their regular auto or home insurance policies. The need for umbrella insurance depends on your net worth. If you have a lot of assets and are at a higher risk of liability, then umbrella insurance would be a good fit for you. Some things that would put you at a higher risk of liability include swimming pools, trampolines, frequently having guests over, and having dogs.

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If you do not have anything that would put you at a higher risk of liability, then umbrella insurance might not be a wise fit. However, if you have some risk factors, you might want to consider an umbrella insurance policy. Contact us at Wine Valley Insurance Services in Napa, CA for more information about our umbrella insurance policies.