What is umbrella insurance and who should have it

Most people are not insurance experts, but things like home insurance and boat insurance are pretty self-explanatory. The same can’t be said for umbrella insurance. It isn’t insurance on your umbrella. This probably explains why many people who could benefit from umbrella insurance don’t have it. At Slaughter Insurance Agency in Quinlan, TX, we believe that part of our responsibility as independent insurance agents is to make sure our customers know what insurance protects and why it is right for them. 

Umbrella insurance is excess liability insurance. What it does is add an additional layer to the liability insurance that you have on another policy. You can’t buy umbrella insurance unless you have a policy with liability coverage. That means you need to have a home, auto, condo, renters, boat, or motorcycle policy. Your basic policy may not have enough liability coverage to protect your assets. You can raise the liability on your policy, but then to get better coverage you need to add an umbrella policy. A typical umbrella policy begins at one million dollars. 

Who needs to have an umbrella policy? In spite of myths to the contrary, you don’t have to be wealthy to purchase an umbrella policy. If you have any assets or a job, you could end up being sued. If you lose the case and a judgment is made against you, you could have to sell your assets or have your wages garnished. It can basically ruin your life. You work hard to save and earn the money to purchase what you have and then to lose it all would be horrible. 

Umbrella insurance will take care of a judgment against you and also pay the legal fees you incur. It is well worth having to protect yourself. 

Contact Slaughter Insurance Agency in Quinlan, TX to learn more about umbrella insurance. 

Everything You Needed to Know About Umbrella Insurance

Have you ever wondered what may happen if you are in an accident where you are found at fault and do not have enough insurance protection to cover all the damages? Well, if this happens, you would be financially responsible for covering what the insurance company does not. Because insurance policies do not cover everything, many in Quinlan, TX, are purchasing umbrella insurance policies. Would you please continue reading to learn more about umbrella insurance and then call our offices at Slaughter Insurance Agency to learn more about the policies we offer? 

What is Umbrella Insurance? 

Umbrella insurance is an add-on policy option that offers additional liability coverage if you have to pay for costs beyond the limits of your base insurance policies. Essentially it closes the gap between what you are liable for and the insurance company payout.

How Does Umbrella Insurance Work? 

Before purchasing an umbrella insurance policy, you must first have existing basic liability coverage, such as homeowners, renters, auto, and boat insurance. After that, your umbrella insurance policy is based on the specified liability limit of your primary plan and goes above and beyond that to help you meet additional financial obligations. 

What is Covered by Umbrella Insurance? 

Most umbrella insurance policies provide additional protection against the following: 

  • When you or your family are found liable for personal injury to another. 
  • When you or your family are found responsible for damage to another’s private property.
  • Pays for settlements from defamation claims against you or a member of your household.
  • Pays personal injury attorney fees if you are held liable for paying the amount for another person’s claim against you.
  • Pays for additional damage caused by your teenage driver’s accident where they injured multiple people. 

Are you ready to purchase an umbrella insurance policy in Quinlan, TX? Call the agents at Slaughter Insurance Agency to discuss options and learn how an umbrella insurance policy can protect you and your family.