Which of the following is NOT a benefit of having an Umbrella or Excess policy?

The choice that is identified as not being a benefit of having an Umbrella or Excess policy is correct because Umbrella policies are specifically designed to provide additional liability coverage beyond the limits of your primary insurance policies, such as homeowners or auto insurance. However, they do not cover all perils involved in an auto accident.

Umbrella insurance typically provides coverage for various liability scenarios, including bodily injury, property damage, and personal injury claims, but it does not extend to covering the auto accident's physical damage or personal property damages caused directly by the accident. The primary auto insurance policy would be responsible for those, and the Umbrella policy would only come into play if the damages exceed the limits of that primary coverage.

The other elements associated with Umbrella or Excess policies present legitimate benefits. They do provide a minimum of $1,000,000 in coverage, which adds a significant financial safety net for individuals facing large liability claims. Additionally, these policies generally are cost-effective, adding substantial coverage at a relatively lower rate compared to increasing limits on existing policies. Finally, they serve to provide excess protection over other liabilities, enhancing the overall risk management strategy.