A little extra coverage. A lot more peace of mind.
Big life comes with big responsibilities. Here's how umbrella insurance can add another layer of liability protection beyond your home and auto policies.
Because sometimes, the unexpected gets expensive.
Your auto and homeowners policies already provide some liability protection. But what happens if you're responsible for damages that exceed those policy limits?
That's where umbrella insurance can come in. Think of it as an additional layer of protection for life's bigger what-if moments.
What is umbrella insurance?
Personal umbrella insurance provides additional liability coverage beyond the limits of qualifying underlying policies, such as homeowners and auto.
It can help pay certain covered medical bills, property damage, legal expenses and judgments when your underlying liability coverage isn't enough.
Picture this.
You cause a serious car accident. The covered liability damages total $800,000.
Your auto policy has a $300,000 applicable liability limit.
That leaves $500,000.
If you have a qualifying $1 million umbrella policy, it could cover that remaining $500,000, subject to its terms, exclusions and required underlying insurance.
When might an umbrella policy help?
Accidents happen. Umbrella insurance is designed for certain situations in which your legal liability could exceed your existing policy limits.
One crash. Big expenses.
You cause a multi-vehicle accident that results in significant injuries and property damage.
An unexpected guest injury.
Someone is seriously injured on your property and you're found legally responsible.
Even good dogs have bad days.
Your dog injures someone, resulting in a covered liability claim. Breed and animal exclusions may apply.
Fun comes with responsibility.
A serious injury involving your pool or another covered recreational exposure leads to a lawsuit.
Coverage depends on the circumstances, your underlying policies and the specific umbrella policy you purchase.
Think beyond
the minimum.
Umbrella policies commonly start at $1 million in additional liability coverage. Higher limits may be available, depending on the insurer.
$1 million
A common starting point for personal umbrella insurance.
$2 million or more
Additional limits may be worth exploring depending on your assets, liability exposures and existing coverage.
What should you consider?
Think about your home equity, savings, investments, household drivers, property exposures and potential future earnings.
There's no single coverage amount that's right for everyone. Review your circumstances and available policy limits.
It's extra coverage. Not unlimited coverage.
An umbrella policy doesn't cover everything. Review its exclusions and conditions before buying.
Not home repair insurance.
Umbrella liability coverage doesn't pay to repair your own home or replace your belongings.
Not health insurance.
It generally doesn't cover your own medical expenses after an accident.
Accidents, not deliberate acts.
Liability arising from intentional harm is generally excluded.
Personal and business are different.
Business-related liability is often excluded from personal umbrella policies. Separate business coverage may be needed.
Own a boat or rental property?
Tell your insurance agent about it. Some umbrella policies can extend to additional qualifying exposures, but you may need specific underlying coverage or endorsements.
First, check what's underneath.
Umbrella insurance usually requires you to maintain minimum liability limits on your underlying auto and homeowners policies.
Those requirements vary by insurer. Texas's minimum auto liability limits may not be enough to qualify for an umbrella policy.
Check your bodily injury and property damage coverage.
Confirm your current personal liability coverage and any special exclusions.
Include additional vehicles, recreational equipment, rental properties and other relevant household risks.
Why this matters.
If you don't maintain the required underlying coverage, you could face a gap in protection when a claim occurs.
What should you compare?
When shopping for umbrella insurance, look beyond the coverage limit. Policy terms can differ.
Compare available limits against your assets and potential liability risks.
Check whether your existing home and auto policies meet the insurer's requirements.
Ask about rental properties, watercraft, household members, legal defense and other exposures relevant to your life.
Include any increases needed to bring your underlying policies up to the required limits.
Oh yeah.
Insurance.
You've worked hard for what you've built. It's worth understanding how much liability protection you actually have.
Hey Charley is independent, so we can help you explore available umbrella insurance options and review how they work with your home and auto policies.
Whether you've recently bought a house, added a driver or simply want to review your coverage, we're here to help.
You've built a life.
Let's help protect it.
Wondering whether your current liability limits are enough? Let Charley review your coverage and help you explore umbrella insurance options.
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