Umbrella insurance is so-named due to the fact that these types of policies expand your existing liability coverage and can fill in gaps that homeowners or auto insurance leave open. For example, a $1 million umbrella policy essentially converts a $500,000 auto liability limit or a $300,000 homeowners liability limit to $1.5 million and $1.3 million respectively.
Lawsuits that exceed those lower limits are becoming more common and can easily wipe out a lifetime of hard work and savings. A Texas umbrella insurance policy can provide additional financial security in the event the unexpected happens.
A local independent agent in the Trusted Choice® network can help assess your needs and compare Texas umbrella insurance quotes from multiple top rated insurance companies. Contact a member agent today for help finding the right coverage for peace of mind.
What Is Texas Umbrella Insurance?
Umbrellas cannot stop a rainstorm. But they can keep you from getting soaked. A Texas umbrella insurance policy extends your existing coverage.
- Higher coverage limits: For example, you may have purchased a required minimum liability auto insurance policy. The state of Texas mandates $40,000 of bodily injury liability insurance with a maximum of $20,000 in coverage for any individual. It also requires $15,000 of property damage liability. If you have priced a new car or paid a hospital bill recently, these limits may not seem that high. An umbrella policy reduces your potential liability exposure.
- Extra types of insurance: An umbrella policy may also provide coverage for things that are not covered under typical home or auto policies, such as slander, false arrest, libel, and invasion of privacy.
- Legal defense: An umbrella policy may also help pay for your attorney fees if another party attempts to sue you.
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Who Needs Texas Umbrella Insurance?
In simple terms an umbrella insurance policy protects you from liability claims that exceed typical insurance limits. Most qualified insurance representatives will generally recommend that anyone with sizable assets acquire an umbrella policy. Even if your net worth is average, there is the potential that a lawsuit could affect you for the rest of your life.
If you are successfully sued, all of your assets could be at risk. The more you have to lose, the more you may need extra insurance in the form of a Texas umbrella insurance policy.
Extended coverage and some extra types of insurance can significantly increase your financial security. Even middle class Texans may have accrued substantial assets over time. Some of these assets might include:
- A home with valuable contents and vehicles
- Savings accounts, including retirement accounts and college funds
- Inheritances from deceased parents
Cost of Texas Umbrella Insurance
Typically, umbrella policies are issued in one million dollar increments. A million dollar policy may cost two to four hundred dollars a year. If you have substantial assets to protect, this could be a good value. An average suburban family in The Woodlands or Plano may only buy enough to cover their home and savings accounts. A business owner or rancher may choose to purchase millions of dollars of extra insurance to protect a family business.
Umbrella policy rates will depend on the type of coverage and coverage limits. Your local Trusted Choice member agent can provide you with competitive insurance plans and rates.
Compare Texas Umbrella Insurance Quotes
Your local independent Trusted Choice member agent can help you review your policies, compare rates and plans, and provide excellent customer service and ethical advice to you as a client. A member of the Trusted Choice network may save you money on insurance. Contact an agent today to compare Texas umbrella insurance quotes and options.