Umbrella Coverage Information
While it’s unlikely that you’ll face a lawsuit that exceeds the coverage limits of your existing insurance policy, the potential financial consequences of such a situation could be devastating, putting your savings and assets at risk. Personal umbrella insurance may help provide an additional layer of protection for claims that exceed the limits of your primary insurance policy.
Contact Area Insurance Services in Midland, Texas, to get a personalized quote for umbrella insurance.
What are Some of the Benefits of Umbrella Liability Insurance?
If the total value of your assets exceeds the limits of your auto or homeowner’s liability, you may consider purchasing umbrella insurance to help provide financial protection from lawsuits. While anyone can be sued, certain activities like owning property, renting it out and hosting large parties may increase your risk of incurring excess liability.
Teenage drivers, dog ownership and swimming pools are other factors that can put you at risk, making umbrella insurance a sensible option for those seeking extra peace of mind. Ultimately, the small price of an umbrella policy might be worth the added protection it provides, especially for those with higher risk potential.
How Personal Umbrella Insurance Works
In the event of a claim that exceeds the limits of a primary policy, umbrella insurance may help provide additional coverage up to the limits of the umbrella policy.
For example, if an individual is involved in a car accident that results in $750,000 in damages, and the individual’s auto insurance policy has a liability limit of $500,000, the policy provides coverage only up to that amount. The individual’s personal umbrella insurance policy may help cover the remaining $250,000 (up to the limits of the umbrella policy).
It’s important to note that personal umbrella insurance typically requires individuals to carry a certain amount of liability coverage on their primary insurance policies, such as homeowners and auto insurance. The exact requirements can vary by insurer and policy.
Why Families Need Personal Umbrella Insurance Coverage
A family may need personal umbrella insurance coverage to protect their assets and future income from potential lawsuits. Families with high net worth, valuable assets, and a high risk of being sued may benefit from the additional liability coverage provided by umbrella insurance.
Contact Area Insurance Services today to learn more about how personal umbrella insurance may help provide additional protection from liability claims.