You may have auto insurance and you may also have homeowner's insurance, but there are times when those two policies are not enough to cover all the expenses that might arise.
Umbrella coverage will cover the gaps that are left over between your auto or homeowner's insurance and a possible judgment against you.
A Jury May Find You At Fault Beyond Your Auto Insurance Coverage In the event that an unfortunate accident is caused by you in your car or something happens on your property, umbrella insurance may turn out to be very useful to you.
Suppose that you have caused a collision and the other driver sues you.
Your auto insurance will cover some of the expenses, but what if the case goes to a jury and this jury awards the other driver a ridiculous amount of money? If it exceeds the amount allotted by your auto insurance company you will be liable for the rest of the amount.
Homeowner's Insurance Can Fall Short, Too Another reason someone can sue you is if they get hurt on your property at your home under your homeowner's insurance policy.
The same thing can happen to you in this situation as with an auto accident with a judgment surpassing the amount given by your insurance company.
You can even be sued by someone if your tree falls during a treacherous storm and damages their cars or other property.
Auto, Homeowner's and Umbrella Together Another thing you can look into when you compare car insurance companies is whether or not they can pull all of these policies together.
It is possible to have your auto insurance policy, your homeowner's policy and an umbrella policy that supplements the two from one company.
This would be convenient and can even give you a nice discount than if you bought them all from separate companies.