What is Umbrella Insurance And Do You Need it in Texas?

Regardless of whether you are a homeowner or business owner in Coppell, Texas or anywhere else within the DFW Metroplex, you might want to think about protecting yourself, your business or your other assets even more by adding umbrella insurance to your existing insurance portfolio.

Both business and homeowners insurance policies have built in provisions to protect the policy owner against liability. The amount of that liability protection depends on the type of insurance, and the amount of coverage you purchase.

Protecting Your Assets

At one time, insurance agents only recommended that people who had over $200,000 worth of assets purchase umbrella insurance. Today, there are many reasons for which a person or business might get sued.

Umbrella insurance is designed to pick up where the liability insurance leaves off, protecting you above and beyond the limits of liability coverage that is built into your homeowners insurance or business insurance.

Other Reasons for Umbrella Insurance

If you have some sort of large-scale celebration at your home, and one of your important guests (your boss, a doctor, the company CEO, or anyone else whose net worth is substantial,) is seriously injured, your liability insurance may not be sufficient to cover all of the medical costs, lost wages or other expenses that the person will incur as the result of that injury. This is the sort of situation where an umbrella insurance policy may save you from financial ruin.

If for some reason, you are involved in an automobile accident for which you are at fault, and there is damage to your car and several others, including at least one luxury vehicle that is totaled, there is no way that your liability insurance would cover the damages of the other cars, let alone the replacement cost of any luxury vehicle. Umbrella insurance provides protection after the amount of liability insurance coverage is exhausted.

Talk to your independent agent in Coppell, DFW or anywhere else in Texas to determine whether you would benefit from umbrella insurance.