Umbrella Insurance Vs. Excess Liability Insurance: What’s the Difference?

Two insurance terms that are often used interchangeably in Williamston, MI are umbrella insurance and excess liability insurance, but they are not the same thing. CG Insurance Agency clarifies the differences between umbrella and excess liability insurance and how they complement primary auto or home insurance policies.

Excess liability insurance is an additional layer of coverage on top of your primary auto or home insurance policy. It protects against high-cost lawsuits or judgments in a catastrophic accident. For example, if you caused a serious car accident resulting in injuries and property damage that exceeds the limits of your auto insurance policy, excess liability insurance covers the cost above your primary policy limits.

It is designed to protect you from financial ruin in a costly lawsuit, such as a swimming pool accident, dog bite, or slip-and-fall.

Umbrella insurance is similar to excess liability insurance in that it offers additional coverage beyond the limits of your primary insurance policies. However, umbrella insurance provides wider protection, targeting broader areas beyond what excess liability policies cover.

For example, if someone sues you for an injury that occurred on your property, and the judgment is higher than the liability coverage your home insurance policy provides, your umbrella policy pays the costs beyond that limit.

While excess liability insurance and umbrella insurance may seem similar, they are not interchangeable. Understanding the differences between these two policies can help you determine which is best for your needs. It is essential to have adequate insurance coverage to protect you during a catastrophic accident in Williamston, MI. Contact CG Insurance Agency if you need more information