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Four priorities when you buy umbrella insurance

Buying umbrella insurance is a great idea if you want to enjoy total protection against liability expenses. If you’re looking for umbrella insurance in the greater Allen, TX community, we can provide you with coverage at Texas Independent Insurance.

There are a few priorities you should be focusing on when you buy umbrella insurance coverage.

The following are four of the most important priorities to consider:

Cover your net worth

It’s generally recommended that consumers get enough umbrella insurance coverage to cover the entire value of their net worth. When you cover your net worth, you ensure that none of your hard-earned money and assets are at risk of being lost due to lawsuit expenses. 

Understand what umbrella insurance covers

Some consumers don’t understand exactly what umbrella insurance does and don’t cover. Umbrella insurance protects your assets if you face liability expenses as a result of being sued.

Umbrella insurance doesn’t cover you for damages to your property or vehicle like home insurance and auto insurance coverage do. 

Research umbrella insurance providers

There are a lot of insurance providers out there that offer umbrella insurance policies. You need to do your research to find the insurance provider that will offer you the highest quality coverage at the most competitive price. 

Research umbrella insurance providers and get a few policy quotes when you’re evaluating your options. 

Figure out your monthly budget

When you buy umbrella insurance, you need to make sure that you keep up with monthly payments. That’s why you should figure out your monthly budget and plan ahead to make your payments on time. 

Looking For Umbrella Insurance?

At Texas Independent Insurance, we’re happy to help you get the information you need on umbrella insurance in Allen, TX. Call us today for a policy quote!

I already have insurance. Why do I need an umbrella policy?

When it comes to insurance, one of the most important things to consider is whether or not you have an umbrella policy. An umbrella policy acts as a safety net for your other insurance policies and can protect you from significant financial losses in the event of a lawsuit or other major incident.

But why do you need an umbrella policy if you already have all of your other standard insurance coverage, like home, auto, or life insurance? Texas Independent Insurance, serving the greater Allen, TX community, is happy to assist with all your queries. 

Here are two reasons why having an umbrella policy is so crucial:

Protects against excess liability costs

Umbrella policies provide additional liability protection above and beyond what your standard policies cover. For example, if someone were to sue you for damages incurred in a car accident that was caused by your negligence, your auto insurance policy would only cover a certain amount of the damages.

However, if you have an umbrella policy in addition to your other insurance coverage, your umbrella policy could provide that additional protection for larger amounts of liability costs.

Provides broader coverage than standard policies

One of the main reasons why people invest in umbrella policies is because they offer much broader coverage than standard insurance policies. For example, most standard insurance policies cover things like bodily injury or property damage up to specific dollar limits. But with an umbrella policy, you can buy much more comprehensive protection and choose how high your coverage limit goes – often high as $1 million or more.

This means that if another driver gets into an accident with you and incurs significant medical bills or other losses, your umbrella policy will kick in to cover those costs if you run out of coverage from your other policies.

Contact Us Today

If you are interested in an umbrella policy, call Texas Independent Insurance today. We proudly serve the Allen, TX area. 

How Umbrella Insurance Works

There are many common types of insurance that are needed by large numbers of people. These include auto and home insurance policies. If you have both of these insurance types, there is a way that you could be better covered. Getting umbrella insurance can increase your amount of specific types of coverage. If you want to know more, call us today at Texas Independent Insurance in Allen TX. 

How Umbrella Insurance Works

Home and Auto Insurance

When you have both of these types of insurance policies, you have several types of coverage in each policy. One of these is your liability insurance. Not having much liability coverage is highly common, and that can leave you with a big financial problem. If you don’t have enough liability coverage, you could end up owing a lot of money after a serious accident that costs a lot in medical bills. To get more of this coverage for both policies, all you need is umbrella insurance. It costs much less to get umbrella insurance than it would add more coverage directly to both policies. 

The Umbrella Insurance Process

When an accident has happened and there are injuries that require medical attention, your auto or home insurance steps in first to pay what it can toward those bills. However, they can only pay up to the policy’s limit. Anything after that is overage that you are responsible for unless you have umbrella insurance. When you have an umbrella policy, it comes in after the home or auto policy and pays what is left over. Umbrella policies have extremely high maximums that are likely to pay anything left over. 

Get Your Umbrella Insurance

If you could use more liability coverage for both your home and auto insurance, give us a call today at Texas Independent Insurance in Allen, TX.

What is umbrella insurance and why should I have it?

The best way to describe umbrella insurance is as protection for your hard-earned assets. It adds an additional layer to the liability insurance that you already have. At Texas Independent Insurance in Allen, TX, we are independent insurance agents and we work for you. With our connection to the finest carriers in the insurance business, we can make sure that you have coverage that is customized to suit you and your needs. 

Many people think that you only need umbrella insurance if you are wealthy. Nothing could be farther from the truth. If you have any assets, you need to protect them. It doesn’t matter whether it is thousands of dollars or millions of dollars, they are your assets and they deserve protection. 

An umbrella policy is excess liability insurance. What it does is add an additional layer of liability coverage to a policy that you already have. Without a policy with liability coverage, you can’t buy umbrella insurance. Think of umbrella insurance as an umbrella and you are your asset. The rain, hail, or snow are all the things that can go wrong and result in your being involved in legal action. The umbrella protects you from getting wet. The umbrella insurance keeps your assets from being lost to a judgment against you. 

Insurance policies that have liability coverage include home, condo, rental, auto, motorcycle, and boat coverage. If you are sued, the first line of defense is the liability coverage you have on one of these policies. If the expenses go beyond this coverage, your umbrella policy will cover up to the limit on that p[policy. Most umbrella policies are for one to five million dollars. Given legal expenses and judgment sizes, this makes good sense. 

Contact Texas Independent Insurance in Allen, TX for all your insurance needs. 

I have less than one million dollars in assets. Can I benefit from umbrella insurance?

Many Texas residents may be confused about what umbrella insurance is and whether they can benefit from this type of insurance. However, our team at Texas Independent Insurance of Allen, TX can help Texas residents understand umbrella insurance and how it can help them. 

What is Umbrella Insurance?

Umbrella insurance is liability insurance. This type of umbrella insurance covers homeowners, auto, or watercraft insurance. This insurance covers things that exceed the current limits of your regular insurance. Umbrella insurance covers your existing personal assets and future assets. This includes wages, your inheritance, or even lottery winnings. Umbrella insurance is designed to cover the cost of a lawsuit or any judgment based on an accident or incident on your property. 

Don’t Need to Be a Millionaire.

Umbrella insurance is generally a good idea if you have more than 100K in assets. You should have more coverage than assets. For example, if you have a million in assets, a million-dollar judgment wouldn’t cover it. It’s best to buy more coverage than you need.

Other Considerations.

Umbrella insurance delivers big benefits for a small price. In fact, a $500k policy would probably be $185 a year. This is a small cost for someone who has assets that he or she wants to protect. This insurance helps pinch in circumstances where you’ve maxed out your regular insurance and need extra insurance to cover something. If you expect your assets to continue to grow, umbrella insurance may be a good investment. This insurance has the ability to create peace of mind when it comes to protecting your assets. Few of us could afford to handle a financial crisis if our assets were compromised. If you have questions about umbrella insurance and wonder if you could benefit from it, please give us a call. We’re here to answer your questions. 

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