The Difference Between Excess and Umbrella Insurance

If you live in Pembroke Pines, FL, it would be a good idea to get familiar with umbrella and excess insurance. What are those two and what do they cover? Well, McCormick Insurance Inc. can answer those questions today. Keep reading to find out the difference between the two.

Umbrella Insurance

This type of insurance is used when your primary coverage is exhausted. If your home, auto, or other insurance has reached it’s limits in a legal battle, this is where your umbrella insurance would kick in. It also covers libel and slander, things that many traditional insurances do not protect you from. Another great thing about umbrella insurance is that you can be covered anywhere in the world. One thing to know about this type of insurance is that you must already have home or car insurance to get an umbrella policy. Think of it as an add-on.

Excess Insurance

In the event of an accident where you need to pay money for repairs, excess insurance will help you out. It is a contribution you make to your car insurance that will provide you with insurance that is a lot more than the primary liability policy. It works like this: when a claim is made to your insurance company, the underlying policy would be used to pay for damages. If the claim amount is greater than the policy, then this is where excess insurance would pick up where your primary policy left off.

Both excess and umbrella insurance help fill in the gaps of your primary coverage. But the difference is in what they can cover. Umbrella insurance can cover things like libel and slander, but excess insurance covers things like damages and liability.

More questions? Contact McCormick Insurance Inc. of Pembroke Pines, FL today.