Umbrella insurance is a policy that provides liability coverage beyond the limits of your existing contract. It gives policyholders much-needed peace of mind and ensures a greater amount of liability protection should a major accident or incident occur in which substantial damage is sustained. To better understand umbrella insurance, below are answers to some of the more frequently asked questions on the subject.

Answers to Common Questions About Umbrella Insurance

What exactly does umbrella insurance cover?

This insurance covers liability costs that exceed your standard policy's limits. This typically includes coverage for bodily injury and property damage claims. If you were sued for $500,000 for causing a car accident in which another party was injured, and your existing auto insurance policy is capped at $250,000, the umbrella policy covers the rest of the costs. Umbrella policies will also help cover legal fees.

Why do I need umbrella insurance?

The primary benefit is protection. When a person is sued for a liability issue, all their assets, including homes, cars, and checking and savings accounts, are exposed. This means that these assets may need to be sold or spent on the costs associated with paying out a claim. With umbrella insurance, your assets have an additional safeguard.

Who can benefit the most from umbrella insurance?

Anyone who owns any type of asset should have umbrella insurance. Those who own homes or cars face increased chances of liability, so umbrella insurance is particularly helpful. Also, people who own motorcycles, boats, or other recreational vehicles should have an umbrella policy in place.

How do I know how much umbrella coverage to get?

Consider the value of your assets and the risks you face. For instance, someone who commutes to work in heavy rush-hour traffic every day may want higher policy limits than someone who only drives occasionally. Similarly, someone who owns a motorcycle and frequently rides without a helmet will want higher policy limits than someone who owns a moped and always wears headgear.

Integrity Insurance Solutions in San Marcos, TX, offers comprehensive umbrella insurance policies to the Hays, Caldwell, and Guadalupe Counties. They will work with you to find the ideal coverage for your goals and budget. They also provide home, auto, renters, and business insurance. Call (512) 396-2211 or visit them online to view their services.