Bosworth & Associates 1818 W SW Loop 323 Tyler, TX 75701

4 Benefits of an Umbrella Insurance Policy

March 10, 2023

Homeowner’s insurance covers your home, auto insurance covers your cars, health insurance covers your medical needs etc. But what happens in the event your coverage isn’t enough?
That’s where an Umbrella Insurance Policy comes in.

As an experienced, trusted local insurance agency in Tyler, Texas, Bosworth Insurance knows better than most that sometimes, events occur out of our control—such as a terrible car accident where you’re at fault.

Your insurance covers whatever damages – property, legal, etc. – that need to be paid if you need to make an insurance claim.

But what happens when you reach your liability insurance policy limit?

At this point, you are financially responsible for all other costs that are incurred. Especially if there are medical bills involved, you could be on the hook for a crushing amount of money. Not only that, but your assets could be at risk of being seized if you’re unable to pay.

This is where an umbrella policy comes in.

Your umbrella policy provides additional coverage to pay for whatever your original insurance coverage isn’t able to take care of.

Insurance exists because life is full of the unexpected. Unfortunately, sometimes unexpected things are more costly than even your insurance can cover.

A good way to think about umbrella insurance is an umbrella protecting you, your family, and your assets in the event you’re liable for more than your current policy covers. In addition, your umbrella insurance can cover other family members as well.

How do you know if you need umbrella insurance?

If you’re in a higher income bracket, you could be at greater risk of being sued.
Umbrella insurance helps ensure that your assets are protected if such an event occurs.

Consider an umbrella insurance policy if you:

  • Own and operate a boat regularly
  • Often host events in your home
  • Have a swimming pool or other water on your property
  • If you have animals or pets

Umbrella insurance also covers issues such as false imprisonment, libel and slander, personal injury, and more.

These can involve situations that could leave you and your family especially vulnerable financially if someone chooses to sue you.

Let’s get a bit more in-depth. Here are four benefits of an umbrella insurance policy:

1. Pets and Animals

Do you have pets? What happens if your animal hurts someone? If your pet causes bodily harm to someone, you could be liable for the cost of their medical bills. Some insurance covers incidents with pets, but not all, and often the coverage is limited.

The expense of such an injury can go up really fast. First, there’s the cost of medical bills. Then there are lost wages if the injured person has to take time off work to heal. They might even decide to sue you for other damages.

If your regular policy doesn’t cover such physical injuries, or only to a point, that’s when your umbrella policy kicks in.

2. Children and House Guests

Especially if you have kids, you know that unexpected things happen. Being prepared for those unexpected occurrences can make a big difference for you and your family financially.

This is especially true if you have amenities such as a pool or trampoline, which statistically have high incident rates. If someone gets injured at your home, you might be liable for their medical expenses in the event your insurance won’t cover the liability or medical bills from such an accident.

Umbrella insurance can help make sure you don’t end up on the hook for expensive bills you and your family can’t afford.

3. Protect Against Lawsuits

Lawsuits, especially if you have your own business, can happen at any time. Your insurance policy will protect you, but sometimes the amount you’re required to pay is more than your policy covers. In that case, you might be subject to garnishment of your wages or other legal actions that hurt you and your family financially and otherwise.

An umbrella policy would help protect you in this instance. The policy would kick in and cover you for the amount you would’ve been liable for.

4. Affordable

A big benefit of umbrella insurance is that it’s generally low cost. Adding a policy to what you already have won’t increase your premiums substantially, and it could save you a lot of money.

The peace of mind is well worth the little extra you’ll pay on your insurance premium to know that if you need it, you’ll be covered.

When it rains, having an umbrella on hand protects you, your clothing, bag, etc., and maybe your child from getting wet.

An umbrella insurance policy uses the same concept: it’s the umbrella you have on hand just in case it “rains” and something happens in which your insurance policy isn’t enough to cover all the costs.

Don’t get caught out in the rain without an umbrella—contact your local insurance provider today, and ask about adding an umbrella policy.

Bosworth & Associates has been selected for the 19th year as a Best Practices agency.