Umbrella Policies

All insurance companies limit the amount of liability insurance you can purchase on your car insurance. An umbrella policy offers a homeowner the ability to increase his car insurance through his homeowners policy. For example, most companies will not write a car insurance policy for more than $500,000.00 in liability insurance. Some limit the amount to $300,000.00. The only way to increase this amount is to purchase additional insurance called an umbrella policy that increases your liability insurance in your car. All companies require, however that you use the same company for your car and homeowner policy in order to get this extra insurance. You should check with your homeowner insurance company to see if it is worth increasing your insurance.