Dumas, Texas
200 E First St.
Dumas, TX 79029
(806) 935-6888

What Is Umbrella Insurance? February 18, 2020

Dumas, Moore
What Is Umbrella Insurance?, Dumas, Texas

Umbrella insurance is a type of added liability coverage that offers protection beyond the limits of another policy. In most cases, umbrella coverage is purchased in addition to a home or car insurance policy as a means of safeguarding the policyholder from financial loss in the event they are sued for a liability issue. Below, learn more about umbrella insurance and what it covers.


Many people are not financially equipped to pay legal defense costs if they are sued. Since all home and car insurance plans have caps on coverage amounts, an umbrella policy will cover all or some of the costs associated with a liability claim against the policyholder.

This protection isn't limited to just the policyholder; most plans also typically cover other members of the family or household. Umbrella policies prevent you from having to spend your savings for a legal defense while giving much-needed peace of mind that every member of the home has a certain amount of liability protection.

What It Coverscar insurance

Different umbrella policies cover different events. Some of the more common events include bodily injuries and/or property damage incurred by another party due to the policyholder's liability. Injury-related costs and personal property damage experienced by the policyholder, or anyone else named in the policy, are not covered events. Most umbrella coverage also protects against a covered individual being sued for slander, libel, false imprisonment, or malicious prosecution.

Who Should Have It

All insurance policies have coverage limits, and umbrella policies kick in once those limits have been exhausted. So, anyone who has home or car insurance should consider an umbrella policy. You can easily find a plan that best meets your needs and budget, up to the desired limit of additional coverage. It is especially crucial for those who have a higher liability risk, such as an owner of a pool or trampoline, a rental property, or a boat.


Start exploring your umbrella options by contacting Stidham Insurance Agency. Since 1969, they have been insuring the Moore County and Texas Panhandle region. They offer home and car insurance, as well as business and agricultural policies. They are a family-owned and operated insurance agency dedicating to providing you with all the solutions you need for protection and peace of mind. Call (806) 935-6888 or visit them online to request a quote from an insurance agent today.

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