When individuals in Boca Raton, FL, seek greater financial protection, they often face a choice between raising liability limits on their existing policies or purchasing umbrella insurance. Both options increase coverage, but the cost-effectiveness and scope of protection vary significantly. Understanding the differences can help policyholders make informed decisions based on their needs and budgets. Not everyone will have the same needs, and each individual’s choices will differ, especially when considering the cost of living.

Increasing Liability Limits

Raising the liability limits on an existing policy, such as auto or homeowners insurance, enhances coverage for claims tied to those specific policies. For instance, increasing liability coverage on an auto policy provides additional protection against accidents resulting in significant medical or property damage costs.

While raising limits is straightforward, it can become costly if applied to multiple policies. Premiums rise proportionally with coverage increases, and the added protection remains confined to the underlying policy. For individuals with diverse risk exposures, this approach may lack the broad coverage necessary for comprehensive financial security.

The Value of Umbrella Insurance

Umbrella insurance offers supplemental liability protection that extends across various policies, including auto, home, and rental properties. It activates once the liability limits on the underlying policy are exhausted, providing an additional layer of coverage.

The cost of umbrella insurance is typically lower than increasing liability limits across multiple policies. A single umbrella policy can provide coverage starting at $1 million for a relatively modest annual premium, making it a cost-effective option for those seeking extensive protection against major claims or lawsuits.

Coastal Premier Insurance Group Offers Insurance Policies for Your Needs

Coastal Premier Insurance Group underwrites policies to meet customers’ needs. We serve Boca Raton, FL, and the surrounding cities. Contact us today.