Whether you’re looking to supplement your home, auto, or commercial insurance policy, it’s important to know the difference between standard liability insurance and umbrella insurance before getting started. 

What is Standard Liability Insurance? 

With most policies, Standard Liability Insurance is included as a part of the policy, covering your portion of damages and expenses in cases where you might be liable. This policy would go into effect first if there is a claim made. This policy is often required at a minimum level with your home, auto, or commercial insurance. 

What is Umbrella Insurance? 

Umbrella insurance is meant to go in and supplement your standard liability coverage when you don’t have the funds to cover all the outstanding expenses. This prevents the court system from seizing your personal assets and using them to pay the difference. 

When you create an umbrella insurance policy, it is a good idea to get as much coverage as you have net worth. Assets such as homes, land, vehicles, jewelry, and anything else that can be sold and used should be considered when you are working with your agent. 

Is Umbrella Insurance Required? 

Umbrella insurance is not a required policy, but it is something that comes highly recommended. This is a great insurance policy for anyone who is a business owner and uses personal assets for that company. It is also a great option for someone who has a significantly high personal net worth that could be used against them in a case. If you feel as though you need this policy, or just want the extra protection, it’s time to reach out to an agent. 

Many of our clients live in or around the Las Vegas, NV area. If you have additional questions about umbrella insurance, contact us today at the Leo Insurance Group.