Umbrella Insurance, Explained in Plain Words
Extra liability protection above your home and auto policies.
How Umbrella Insurance Works
Umbrella insurance confuses almost everyone, so here it is as simply as we can put it. Your home and auto policies each come with liability coverage. That's the part that pays when you're blamed for hurting someone or damaging their property. Each one has a limit, a maximum it will pay.
An umbrella policy sits on top of both, and often on top of your other policies too, like a second home, a rental, a boat or a motorcycle, when those meet the company's requirements. When a claim is bigger than the limit underneath, the umbrella picks up where it stops. That's where the name comes from: one policy over the top of the others.
Here's an example, with made-up numbers to show how it works. Say you cause a car accident and someone is badly hurt. The court awards them $900,000. Your auto policy has a $500,000 liability limit, so it pays $500,000. Without an umbrella, the other $400,000 can come from you: your savings, your home equity, even future wages. With a $1 million umbrella, the umbrella pays the $400,000.
Two things an umbrella does not do. It doesn't pay for damage to your own home or your own vehicle; your home and auto policies handle that. And it isn't a replacement for them; it only works on top of them. The policy wording always decides what's covered, so we go through the coverages with you before you sign anything, not after.
Ask About an Umbrella Policy
Who Needs an Umbrella Policy
We bring up umbrella insurance with every homeowner we work with. The more you own, the more there is to protect, and a home is usually the biggest thing on the list.
It's worth a serious look if any of these sound like you:
- You own a home, or have savings and retirement accounts you've built over years.
- You have teen drivers in the house.
- People come over often, or you have a pool, a trampoline, or a dog.
- You own a rental property.
- You drive a lot, including the daily commute on 680.
We offer umbrella policies from $1 million to $5 million. Every company requires certain liability limits on your home and auto first, so the umbrella has something to sit on. We set those up with you so everything lines up with no gaps.
How Darlene Baxter Insurance Agency Sets Up Your Umbrella
At Darlene Baxter Insurance Agency, Darlene and Michelle Henning handle umbrella policies. Darlene has been in insurance since 2009, and umbrella is the coverage people ask the most questions about, so we take the time to explain it.
We start by looking at your homeowners and auto insurance together, since the umbrella depends on both. If your limits need to go up first, we show you what that costs. Then we shop the umbrella, starting with our main company and looking at other companies through our brokerage when it isn't the right fit.
You'll see the options side by side, in plain words, and you choose. We handle the paperwork, and we offer a review at every renewal so your coverage keeps up with what you own. You can see the shop step of our process for how that works.
We can't promise a price or approval. Those decisions belong to the insurance companies. We'll always tell you where things stand.
Umbrella Insurance Across the Areas We Serve
The office is in Pleasant Hill, and we write umbrella policies for homeowners across Contra Costa County, from Walnut Creek and Lafayette to San Ramon, Alamo and Danville.
We also help families in the foothills and mountains, in Tuolumne County, Calaveras County, El Dorado County and Nevada County. If you own a second home or a rental up there, an umbrella can often sit over those policies too.
Ask Us How an Umbrella Would Work for You
Not sure whether you need one, or how much? Call the office at (925) 940-6970, or send us a message. We'll walk you through it with your own numbers.
Frequently Asked Questions
What does umbrella insurance cover?
Liability above your home and auto limits: injuries to other people and damage to their property that you're blamed for. It doesn't cover damage to your own home or vehicle.
How much umbrella coverage do I need?
Enough to protect what you own. We offer umbrellas from $1 million to $5 million. We look at your home, savings and other assets with you and talk through the right amount.
Do I need to change my home or auto policy to get an umbrella?
Sometimes. Every company requires certain liability limits on your home and auto first. We check your current limits and show you what, if anything, needs to go up.
Does an umbrella cover my rental property?
Often it can, when the rental's own policy meets the company's requirements. Tell us about every property you own so the umbrella covers all of them.
Keep exploring
Want a second look at your coverage? Talk to Darlene Baxter Insurance Agency.