The Difference Between Umbrella Insurance and Excess Liability Insurance

Having the right insurance coverage is essential for protecting yourself from costly lawsuits and unexpected financial burdens. At Carminucci Agency in Croton Falls, NY, we often hear questions about umbrella insurance and excess liability insurance. While they may seem similar, they serve different purposes, and understanding the distinction can help you make the best choice for your needs.

What Is Umbrella Insurance?

Umbrella insurance is an extra protection layer beyond your existing home, auto, or other liability policies. It increases your coverage limits and extends to situations your primary policies may not cover. For example, if you’re sued for defamation or face an expensive legal battle, an umbrella policy can help cover the costs. This makes it a valuable option for those who want comprehensive protection against various risks.

How Excess Liability Insurance Differs

Excess liability insurance, on the other hand, increases the coverage limits of an existing policy without adding new types of protection. It acts as an extension of your current liability policy but does not provide coverage for situations that aren’t already included in your primary insurance. If a claim exceeds the limits of your standard policy, excess liability insurance kicks in to cover additional costs, but it won’t protect you in scenarios that fall outside your base coverage.

Choosing the Right Coverage for Your Needs

Understanding the differences between these two options is key to ensuring you’re fully protected. At Carminucci Agency in Croton Falls, NY, we can help you determine whether umbrella insurance or excess liability insurance is right for you. Contact us today to explore your options and secure the coverage that best fits your lifestyle.