Umbrella Insurance in Tennessee

Experts break down Tennessee umbrella insurance costs, coverages, companies, and more.

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Umbrella insurance is a less talked about insurance coverage that can make a big difference in your life. Whether you're a public figure or a parent in Tennessee, umbrella insurance can protect you if a third party sues you for an unforeseen event. 

To determine whether an umbrella policy is right for you, it's best to start with a local independent insurance agent. Agents in Tennessee can answer your questions and help you secure coverage if it's right for you.

What Is Umbrella Insurance in Tennessee?

Umbrella insurance is a type of added liability coverage you can extend on your homeowners insurance and auto insurance policies that you can use if you're facing a liability claim or lawsuit. 

The coverage provided in umbrella insurance steps in when you've exhausted the liability limits in your underlying home and auto policies. For example, should you find yourself in a lawsuit where you're responsible for $500,000, your home liability limits could cover $250,000, and your umbrella policy would cover the additional $250,000. 

Umbrella insurance can also extend to business, landlord, RV, boat, and other coverages. 

What Does Umbrella Insurance Cover in Tennessee?

You could face various costs during a liability claim, from medical bills to legal fees and even funeral costs. Whether it's an extension on your home or auto policy, umbrella insurance coverage includes the following:

  • Medical bills for injuries that take place in your home
  • Property damage that takes place in your home
  • Medical bills for injuries that you cause with your vehicle
  • Property damage you cause with your vehicle
  • Court fees, legal fees, settlement costs, restitution costs
  • Funeral costs
  • Libel and slander

There are several things that an umbrella policy will not cover, including:

  • Intentional injury or property damage
  • Injuries or damage that occur while you're committing a crime
  • Personal injuries or property damage

To receive these coverages, you must first use your liability limits in your underlying policies. For this reason, insurance carriers usually require you to purchase around $250,000 liability on your auto insurance and $300,000 liability on your home insurance before they will sell you an umbrella policy. Sometimes the carrier will require you to max out your standard policies before offering umbrella coverage.


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Who Needs Umbrella Insurance in Tennessee?

Nearly every person can benefit from umbrella insurance, but some individuals with higher net worth are more exposed than others. People who file lawsuits tend to go after people who have more to lose, but some people simply have increased risks. 

Some things to consider when determining whether you need an umbrella policy or not include:

  • If you have a home, savings, investments, or lifestyle you would like to protect.
  • You own a business that requires you to have customers on your personal property.
  • You allow others to hunt, ride ATVs, or participate in other risky activities on your property.
  • You currently have high earnings or have the potential to have high earnings in the future.

How Much Umbrella Insurance Do I Need in Tennessee?

Determining how much umbrella insurance to purchase starts with understanding your risks. Umbrella policies are usually sold in $1 million increments, so you know you will be starting there.

A good rule of thumb is to buy as much umbrella insurance as your net worth. However, you also need to consider if you'll have any potential loss of future income in the event of a lawsuit. 

A Tennessee independent insurance agent can help you determine the right amount of umbrella insurance coverage to fully protect you.

Can You Deduct Umbrella Insurance on Your Taxes in Tennessee

Unfortunately, personal insurance premiums are not tax-deductible in Tennessee. When adding an umbrella policy to your home or auto insurance it's considered personal coverage.

On the other hand, if you are a Tennessee business owner and have purchased a business umbrella policy, you would be able to deduct the premium on your taxes. 

What Are the Best Umbrella Insurance Companies in Tennessee?

The easiest way to save money on your insurance premiums is to shop umbrella insurance quotes in Tennessee. When looking for a reputable company, you will want a carrier that is known to offer reliable coverage at an affordable price. 

The benefit of working with a Tennesee independent insurance agent is that they are familiar with the top-rated companies in the state. Agents have prior experience working with multiple companies and can provide insight into who the best umbrella insurance companies in Tennessee are.

Why Shop Umbrella Insurance with a Tennessee Independent Insurance Agent?

You never know when an accident will happen or when someone will decide to make you the victim of their next lawsuit. Even if you're not at fault, lawsuits are expensive to fight. Protecting yourself with an umbrella insurance policy provides you the comfort you need in knowing that a lawsuit won't financially crush you.

With so many carriers and options to choose from, working with an independent insurance agent takes the hassle out of shopping quotes. Agents are experts in insurance coverage and have helped individuals across Tennessee secure umbrella policies that fit their needs. Agents will speak with you, free of charge, to learn about your personal situation and secure umbrella coverage that fits your lifestyle.

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