Umbrella insurance (sometimes called excess liability insurance coverage) refers to added liability insurance coverage meant to protect you from lawsuits and claims beyond your standard policy limits. Besides, it includes liability coverages like false arrest, libel, and slander that may not be included in your other liability policies.

Would you like more information on umbrella insurance? Hang on as Texas Independent Insurance shares insights. 

What is covered by umbrella insurance?

Understanding what umbrella insurance covers can help determine whether you need the policy or not. Here is what umbrella insurance covers.

• Bodily injury: Suppose your dog bites a guest or another dog. You will be held responsible for medical expenses, and your home insurance will cover them. But what if the costs are too high for your home liability insurance coverage? You will need additional coverage — in this case, umbrella insurance.
• Property damage: Umbrella insurance covers damages that you have caused to other people. For instance, damage to other people’s property in an auto or boat accident.
• Defense costs: If you are sued, you will typically incur costs to hire an attorney. Worse yet, you are faced with huge settlement claims if the case is ruled against you. Thankfully, umbrella insurance can bail you out.   
• Personal liability: Besides the above, your umbrella insurance coverage will come to your rescue when you face false arrests, defamation, imprisonment, malicious prosecution, etc. The insurance cover will help you to fight back and regain your reputation. 

Who needs umbrella insurance?

If you are a wealthy individual or from a wealthy family, you are probably a lawsuit target and should consider protecting yourself with umbrella insurance. But umbrella insurance isn’t for the wealthy only. If you are in the below categories, you need umbrella insurance:

• Hold high public profiles
• Serve in charitable boards
• Own a boat, vehicle, or home
• Have animals such as dogs and horses that can cause injury to others
• Have a swimming pool or pond/trampoline
• Hold large home parties 
• Have employed household staff

If you earn a livelihood, you need umbrella insurance to shield you when your “base” liability limits are exhausted. If you haven’t yet done so, please contact Texas Independent Insurance in Allen, TX today for an affordable quote.