Umbrella Insurance for Plano and all of North Texas

Why You Should Consider Umbrella Liability Protection

If you own a home, car in North Texas, you most likely have some kind of liability insurance on all them. After all, it would not be wise to take unnecessary chances with your possessions or financial future. However, there is another kind of liability coverage and it is called Umbrella Insurance. This kind of protection can be extremely valuable and without it you could be facing a financial nightmare.

Suppose a claim is made on your home or auto insurance. For example, someone slips and falls in your house and files a claim for $400,000 claiming injuries, loss of income, and disability. Your policy may only have $100,000 of coverage, so what can you do?

If you are like most people you will be taken to court and sued for the additional $300,000. This type of scenario seldom plays out well for the homeowner.

Let's take a look at an example of how Umbrella Liability Insurance can enhance your auto insurance protection. Herman and Dinah H are a hard working couple with 2 kids and a mortgage. They both work and have two vehicles. The couple was responsible so they took out more than the minimum 30/60/25 auto liability insurance and opted for 250/500/250.

About a year later, Dinah was involved in a serious auto accident. She lost control of her car while driving on the highway and hit another vehicle head-on. Although there were no fatalities Nancy was seriously hurt and three passengers from the other car suffered major injuries requiring significant hospitalization, physical therapy, and rehab. In all, the total medical claims came to $755,000 and Nancy only had $500,000 of coverage.

Thankfully, Herman had the foresight to take out Excess Liability Insurance (an umbrella policy) and it provided one million dollars of coverage. This policy covered the excess claims.

What Is Umbrella Insurance?

An umbrella policy is designed to cover liability claims in excess of an insurance policy. In addition, it may pay for some liability claims which are not included in any of your policies.

Who Needs Umbrella Liability Insurance?

Almost everyone will benefit from umbrella coverage. It can make the difference between financial stability and financial hardship if you have a liability claim against you. These people should consider buying an umbrella policy:

  • Home owners
  • Business owners
  • Professionals
  • Corporate officials
  • Landlords
  • High value home owners
  • People with major assets

What Will My Excess Liability Insurance Cover?

Besides paying for excess claims on certain policies your umbrella protection can extend to cover:

  • Libel
  • Slander
  • False arrest
  • Legal fees
  • Excess professional liability claims
  • Excess malpractice claims
  • Dog bite claims

What Won't My Umbrella Insurance Cover?

An umbrella policy is not complete coverage and it may not cover these claims:

  • Uninsured motorist claims - this is not usually covered because umbrella liability is designed to pay for things you are legally responsible for.
  • Flood insurance
  • Property damage to your home - your homeowner's hazard insurance should cover these claims. However, if you fail to take out replacement cost coverage, an umbrella policy will not cover the difference because it is not a liability issue.
  • Acts of fraud - may include theft, battery, or claims where you acted against the law.

How Much Umbrella Liability Insurance Do I Need?

Your needs will depend on your job, assets, and risk factors. Many people opt for one million dollars of protection. However, if you own a business or your home is worth a great deal, you may need to take out considerably more. You should consider talking to an experienced insurance agent from Advantial Insurance Agency for your needs.

What Are Your True Risk Factors At Home And On The Road?

When you talk to our insurance professionals, you can discuss all your needs and the risks you face each day. Because everyone's situation is unique, what's sufficient for one family may be woefully insufficient for another family. One thing for sure, you cannot have too much coverage when it comes to liability protection.

With umbrella policies you may need to carry a specific amount of liability to qualify. For example, when it comes to auto insurance in Texas you only need to carry 30/60/25. However, since this is the bare minimum, some insurers require you to carry at least 250/500/250 or even more, before they will issue you an umbrella policy. It depends on the insurance company and when you have an independent agent from Advantial Insurance Agency you have access to many of the best insurers serving the state of Texas.

Your independent agent is not an insurance company rep. This person works for you instead of an insurer and is there to make sure your coverage is not only complete, but also affordable.

All it takes is one unexpected large liability claim against you to ruin you and your family financially. Come to Advantial Insurance Agency today for a free quote on Excess Liability Insurance. These policies are relatively inexpensive considering the amount of coverage and peace of mind they provide.