Common Umbrella Insurance Exclusions

Umbrella insurance is meant to protect you when the underlying liability coverage has been exhausted. Suppose your pet has bitten someone, and the medical costs exceed your home liability coverage. In such instances, it’s when umbrella insurance can save the day. However, like other insurance policies, your umbrella insurance policy isn’t entirely flawless. It has exclusions and limitations you need to know about. Neff & Associates Insurance Services explains areas not likely to be covered by your umbrella insurance policy:

  • Own injuries and damage: Your umbrella insurance covers others and not damage to your property. For instance, if you cause a car accident, your umbrella insurance will cover property damage and bodily injury you cause to others. However, you will have to rely on your car insurance for your injuries and damage to your vehicle.
  • Coverage to be taken care of by the underlying insurance: Umbrella insurance only takes over after the conventional liability coverage limit has been exhausted. With that in mind, umbrella insurance won’t cover liabilities that can comfortably be handled by your commercial, home, or auto insurance.
  • Intentional/criminal acts: Umbrella insurance won’t cover you if you intentionally injure someone or damage other people’s property. Similarly, umbrella insurance won’t cover you when liability claims arising from your criminal acts.
  • Other exclusions: Umbrella insurance won’t cover you if you cause damage or injury using a recreational vehicle or dog breed excluded in your policy.

Just like knowing what your umbrella insurance covers, it’s equally important to learn about the exclusions. This way, you won’t be met by surprises when filing a claim. Want to learn more about umbrella insurance? Please get in touch with Neff & Associates Insurance Services for more information. Also, you can pass by our Pismo Beach, CA office to chat with one of our agents.

 

Do you need auto insurance if you don’t have a car loan?

Most vehicle owners either have a car loan or lease a vehicle. If you have either of these, you will be required to have complete coverage for your vehicle. It protects the vehicle which you don’t own at this point. But what about after you have paid off your loan? At Neff & Associates Insurance Services in Pismo Beach, CA, we know the law in California regarding personal vehicles and are happy to share that information with our customers. 

In California, all drivers need to be covered by liability insurance, even if they don’t have a car loan. The required coverage is 15/30/5. That means in practical terms, $15,000 for coverage of medical expenses and other things for one person injured in an accident you are deemed responsible for. If more than one person is injured, the total paid out for injuries in one accident is $30,000. The amount for property damage is $5,000, which is very low no matter how you look at it. 

This is what you must have. Is it what you should have? Only if you have no assets and an old beat-up vehicle that you won’t mind losing. If you are a person who uses their vehicle every day for activities necessary to their survival, you need to protect your vehicle. This means you need to have collision and comprehensive coverage which protects your car when it gets damaged. 

Between these two types of coverage, you will be protected from a vehicle accident, theft, vandalism, and other damage from various weather events. If you need your vehicle, this is vital coverage. 

 Contact Neff & Associates Insurance Services in Pismo Beach, CA, when you need the latest information about automobile insurance.