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

What Is An Umbrella Policy?

November 5, 2020

If you by chance are ever sued, you will find out that your standard auto policy or homeowners insurance will allocate you with some liability coverage in paying for judgements against you and your accumulated legal fees, up to an amount set in the policy. However we do now face a litigious society where you may want to seek further liability protection if something serious arises. That is what a personal umbrella liability policy delivers.

Many people with auto and homeowner’s insurance question if an umbrella insurance policy is truly necessary. If you own property or have other assets you wish to preserve, you need to strongly consider adding and umbrella insurance policy.

What Are The Basics Of It?

Think of an umbrella insurance policy as additional liability insurance put into place to help protect you from lawsuits and major claims. The result is that an umbrella policy helps you by protecting your assets and your future if you are ever faced with such a dire situation.
It does so by providing additional liability coverage once the limits in your homeowners, auto, and boat insurance policies are reached. This type of policy is created to activate specifically when the liability on these traditional policies is drained.

An umbrella policy also delivers coverage for claims against which might be excluded by other liability insurance policies including: slander, libel, false arrest, and liability coverage on rental property.

What Can Umbrella Policy Cover?

You make be thinking that you already have homeowner’s and auto insurance, so they will cover these situations. But the truth is umbrella insurance insures when the limits on those policies are reached, adding additional coverage for:

  • Damage to property
  • Injuries
  • Certain lawsuits
  • Injuries sustained by a guest on your property
  • Harm to others caused by your dog or pet.
  • Accidental damage to school or business property caused by your child
  • Damages to property because of an auto accident if you are at fault
  • And more!

A Quick Example

Here is an example that may shed some light on how an umbrella insurance policy would work provide extra protection. Sadly you caused an automotive accident and the total cost for the injuries you are to blame for is $400,000. So let us then guess that the Bodily Injury limit laid out for your personal auto insurance is $250,000. Your existing auto policy would cover $250,000 of the damages. But how will you then cover the remaining $150,000? An umbrella policy can! It can take care of covering the amount that exceeds the limit built into your automotive policy, all the way up to a maximum amount you decide upon for your umbrella policy.

Call Bosworth & Associates Today

Bosworth & Associates is proud to be your top resource for local auto, home, and life insurance throughout Tyler, TX since 1939. And we can help you with adding an umbrella policy today to ensure you and your assets are protected! Contact us for a quote or to inquire about our policies.

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