Click to Call
New American Insurance, LLC

1030 Wildewood Centre Drive
Suite A
Columbia, SC 29229

Get Directions

Insurance Blog

Do I Need Umbrella Insurance If I Have a Good Health Insurance Policy?

It’s no secret that the cost of medical care in the United States is among the most expensive globally. This is why many Columbia, SC residents prioritize getting good health insurance. Over the last couple of years, more and more residents have been purchasing umbrella insurance. At New American Insurance, we have had numerous people ask us whether they need umbrella insurance or if they already have an outstanding health insurance policy. You need umbrella insurance even if you have good health insurance. Here is what to know.

What Is Umbrella Insurance vs. Health Insurance?

Umbrella insurance can be defined as excess liability insurance. It provides extra coverage beyond what a regular auto, homeowners, or boat insurance covers. Umbrella covers your and your family’s liability for medical bills, property damage, or settlement to other persons that surpasses the maximum policy limits of your standard insurance policies. On the other hand, health insurance covers the medical care you and your family receive. 

What Does Umbrella Insurance vs. Health Insurance Cover?

Umbrella insurance covers court fees, legal defense fees, and the settlement if someone sues you or your family for property damage or injury. Additionally, it also covers the medical bills of the person injured either in your home or by or in your vehicle. In contrast, health insurance strictly covers your and your family’s medical bills.

How Does Umbrella Insurance vs. Health Insurance Work?

For umbrella insurance, let’s say your auto policy has a maximum policy limit of $100,000, and you cause injuries or property damages amounting to $250,000 in liabilities. Your auto insurance will pay $100,000, and your umbrella insurance will pay the $150,000 balance. In contrast, your health insurance will pay for you and your family’s medical care up to the policy limit. However, your umbrella policy won’t cover the excess of your health insurance.

Contact New American Insurance in Columbia, SC for more insurance info.

States Served

  • South Carolina
  • North Carolina
  • Georgia
  • Maryland
  • Virginia


Partner Carriers

  • AmTrust
  • Chubb
  • Donegal
  • Encompass
  • Guard
  • Kemper
  • Liberty Mutual
  • Main Street
  • Nationwide
  • Safeco
  • State Auto
  • The Hartford
  • Travelers