Ace in the hole: How umbrella insurance works

The understanding that many people have regarding umbrella insurance is that it’s basically a bundle deal: Covering your house, car, boat and business all in one go. It does cover your house, car, boat and business all in one go, but it’s not exactly bundled insurance.

The key difference is that bundled insurance provides your primary policy when you need to make a claim. You might make a dozen claims without dipping into your umbrella insurance, or you might need it on your very first claim. Umbrella insurance is an additional policy that you can lean on when your current policy does not cover the claim.

The alternative to an umbrella policy is to get extensive coverage on each individual policy that you hold. That’s fine if you don’t have too much to cover, but it can get pricey over two cars and an RV and a house and etcetera. With umbrella insurance, that extra money can go to any damages you might incur, you don’t have to move the money around and pick and choose and try to figure out where your risks lie. If you suffer damages that your primary policies will not cover, you can dip into the umbrella insurance and make a claim to cover anything that you need to cover.

Western Republic Insurance Services in Huntington Beach, CA can help to connect you to an umbrella policy that helps to keep you covered no matter what comes your way. They say that insurance is something that’s better to have and not need than have and not need. That’s doubly true for umbrella coverage.