Umbrella insurance is a type of coverage that goes above and beyond the limits and protections of your other insurance policies. It can offer additional protection against property damage, injuries, legal action, and personal liability issues.
There are two key ways in which an umbrella insurance policy can help safeguard your assets and your future:
- Umbrella insurance can kick in when the limits on your homeowners, boat, and auto insurance policies have been reached, providing extra protection in case of unexpected events.
- In addition to covering claims that may exceed the limits of your other insurance policies, umbrella insurance can also provide coverage for incidents such as libel, false arrest, liability, and slander for rental properties you own.
All Texas Insurance Brokers aim is to provide an overview of umbrella insurance and assist you in determining whether or not this type of coverage is suitable for your needs.
Umbrella Insurance Coverage
Umbrella insurance is designed to provide extra coverage for costly lawsuits and claims once the limits of your other policies have been reached. Remember that umbrella insurance is not meant to duplicate the coverage provided by your underlying policies but rather to protect you from liability for damages to others.
“Many home, watercraft, and auto policies come with protection, but only one lawsuit can quickly exhaust those limits.” A typical umbrella insurance policy may cover the following:
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Bodily Injury
If you are at fault for causing injuries to another person, your umbrella insurance policy will cover the resulting costs after the limits of your underlying policies have been reached. Examples of this include a dog bite incident in your home or an auto accident in which you injure another driver.
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Damages to Property
Umbrella insurance can also protect you if you damage another person’s property, like their car or home.
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Landlord Liability
As a landlord, an umbrella insurance policy can help cover costs related to bodily injuries or property damage suffered by a tenant.
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Legal Costs
If you are used for causing personal injury or property damage to others, your umbrella insurance policy may cover legal defense and attorneys’ fees. It may also provide coverage for legal expenses related to libel or slander cases.
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Incidents Outside of the Country
Some umbrella insurance plans provide global protection, meaning you are protected no matter where damage or accident occurs.
What does Umbrella Insurance Not Cover?
Umbrella policy does not cover the following things:
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Injuries or Damages to Property
It’s important to note that umbrella insurance provides additional liability coverage and will not cover anything already included in your underlying policy.
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Liability Under Contract
If you take on liability for someone else through a contract, your umbrella insurance will not provide coverage. However, you may be able to purchase separate liability insurance for this purpose.
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Business Losses
Umbrella insurance is personal and doesn’t cover damages or business losses. If you need coverage for your business, a commercial umbrella insurance policy may protect attorney fees, medical expenses, and other costs related to company lawsuits.
Supplement Your Insurance with an Umbrella Insurance Policy
According to All Texas Insurance, the average annual cost for umbrella insurance premiums ranges from $200-300. However, the specific price of an umbrella insurance policy may vary based on several factors.
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Coverage amount
The amount of coverage provided by an umbrella policy typically ranges from 1-5 million dollars. The premium for your policy may vary based on the level of coverage you select and the amount of liability coverage you already have. “If you want to enhance liability limits, you may have to pay a higher deductible or premium.”
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Net worth
Umbrella insurance can help provide additional coverage if your present insurance policies do not fully protect the worth of assets. The premium for this type of insurance may be higher depending on your net worth and the coverage you need.
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Your location
The cost of insurance policies can vary by state. If you reside in a state with lower coverage limits for your primary insurance policies, you may choose to purchase an umbrella insurance policy with higher coverage limits.
Conclusion
Are you worried about insurance policies? No need to worry now with Umbrella Insurance with All Texas Insurance. Our professionals will guide you at each step with Umbrella Insurance. Contact us for details and information.