Underlying insurance refers to a primary policy that provides basic protection for a specific risk. It’s often the foundational contract that covers common losses and damages.
For example, if you have a Homeowners policy, it’s considered the underlying insurance. It provides basic coverage for perils like fire, theft, and wind damage.
However, there may be situations where additional coverage is needed, such as Umbrella insurance. In this case, the Homeowners policy would be the underlying insurance, and the Umbrella one would provide excess coverage beyond the limits of the primary policy.
Understanding the concept of underlying insurance is crucial, especially when considering additional coverage options. By having a solid foundation of underlying insurance, you can better protect your assets and mitigate potential risks.
At PSIC, we offer a variety of insurance products designed to protect your valuable assets. These policies, including Homeowners, Renters, Condo, Landlord, Mobile Home, Motorcycle, and Off-road insurance, serve as your primary or underlying insurance.
Your underlying insurance provides essential coverage for common risks, such as fire, theft, and liability. However, depending on your specific needs, you may want to consider additional coverage, such as Umbrella, Flood, or Earthquake insurance.
To ensure you have the right level of protection, we recommend consulting with your insurance agent. They can help you assess your unique needs and recommend additional coverage options that complement your existing policies.
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Last updated: June 27, 2023
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