Umbrella Insurance vs. Excess Liability Insurance: Which Do You Need?

Many Scottsdale, AZ residents want liability protection beyond what their homeowner’s policy affords. Both umbrella and excess liability insurance can provide this additional protection, but what you need depends on the specifics of your situation.

Understanding Umbrella Insurance

Umbrella insurance provides extra liability protection over your existing policies, such as homeowners, auto, and boat insurance. It increases your liability limits and potentially covers a broader range of scenarios that may not be included in your primary policies.

An umbrella policy typically covers bodily injury, property damage, and personal liability situations, including incidents like libel and slander. This protection normally applies when the limits of your underlying policy are exhausted.

Excess Liability Insurance

Excess liability insurance is similar to umbrella insurance in that it provides additional coverage beyond the limits of a primary policy. 

However, excess liability insurance normally only extends the policy’s coverage limits. It doesn’t add onto multiple policies, and it doesn’t add protections that aren’t already covered by the one underlying policy. Excess liability essentially only raises the liability limit of that one policy.

Choosing Between the Two

Deciding whether you need umbrella or excess liability insurance depends on your specific circumstances and the level of protection you require. 

Assess your personal risks. Umbrella insurance might be more appropriate for individuals with significant assets, high-risk hobbies, or public profiles because it covers more scenarios. Check your coverage for gaps, which would be another reason to choose umbrella coverage.

Excess liability might make more sense if there aren’t major risks or gaps that require broader protection.

We at Homeowners Insurance Group can help you through the decision process as you evaluate which would be better for you.

Get Help From a Knowledgeable Agent

If you’re in Scottsdale, AZ, and need assistance with either excess liability insurance or umbrella insurance, contact us at Homeowners Insurance Group.