What Is Umbrella Insurance?

in the rain with an umbrella

When someone hears the term umbrella insurance, they may wonder why someone would insure an umbrella. But umbrella insurance is certainly not about insuring what keeps you dry; it is about keeping you from getting soaked by liabilities that may arise that are not covered by your existing homeowners and car insurance policies. Jeff Van Matre of the Jeff Van Matre Insurance Agency of Dallas, Texas can help you understand the importance of an umbrella policy.

Umbrella insurance defined

Sometimes a person encounters a gray area in a claim. The language of your particular homeowners or car insurance policy may not be clear and the insurance underwriter is hesitating on paying a claim. Or, you are being sued and the potential liability far exceeds the amount in your homeowners or car insurance policies. Both of these situations are when an umbrella policy can benefit you.

Umbrella insurance will:

  • Provide coverage over and above the amounts of your standard policies. If you were involved in a car accident where someone was seriously hurt, the coverage of your car insurance may not be adequate to provide for the total costs of the legal action.
  • Provide coverage for items that are excluded from your standard policies such, as libel, slander, or if someone is seriously injured inside your home or on its grounds, such as in your swimming pool.

Thinking about asset protection

Many people falsely assume that they do need umbrella insurance because they do not have considerable assets. If they are sued, the person would be limited to getting the assets they own if the amount exceeded their insurance limit. That thinking is incorrect. The following items could be levied in such a situation:

  • Your retirement accounts.
  • Your future earnings.

Umbrella insurance provides protection for the unexpected and is a cost effective solution to the risks involved in home and car ownership.

About Jeff Van Matre Insurance Agency:

To learn more about the importance having an umbrella policy, call the Jeff Van Matre Insurance Agency at 972-492-8500, which offers customized insurance policies that feature a variety of coverage options. Contact us today to discuss a policy or receive a quote. Located in Carrollton TX, we proudly serve individuals and businesses in Carrollton, Lewisville, Dallas, Irving, Plano, and surrounding communities.