An Umbrella policy, also known as an Excess Insurance policy, operates how the name implies – it sits on top of the rest of your insurance policies like an umbrella, providing excess coverage for high liability situations.
An umbrella policy is the most cost effective and efficient way to set above standard limits for your insurance policy. The umbrella policy allows you to increase your protection across all your underlying policies with one quick and easy move, rather than adjusting each insurance policy separately. This affords you far more than just ease of adjustment, and can actually save you a lot of money too!
Insurance companies work on statistics, and the probability that you will make a claim on your policy, combined with the expected dollar amount of those possible claims, determines the premium you will pay to carry the insurance contract. The same goes for an umbrella policy, but because the probability that you will file a claim totaling more than your policy limit is far lower than the probability that you will file a smaller, more average sized claim, the premium that you pay for the same coverage in an excess policy will be less than the premium you would have paid increasing the limits of your underlying policies. Essentially, the excess policy is far less likely to be used, given that the underlying policy must exhaust all of its limits prior its use.
If you have any questions regarding your specific case, contact a Fairfield personal injury lawyer at The Choyce Law Firm today.
Individuals can carry excess policies with their underlying policy carriers, or they can carry umbrella policies with a completely different insurer. This can make it difficult to find all of the applicable insurance that a liable party carries, which could mean an individual involved in an accident will not receive all of the compensation that they deserve. Personal injury case payouts are often limited by the amount of insurance the liable party carries, and it is imperative that the attorneys you hire for your case are experts in finding the applicable insurance limits that will maximize your injury compensation.
The personal injury attorneys at this law firm have been fighting the insurance companies for years and are experts in the field. Call us for a free consultation today!