What is Umbrella Insurance?

Many of your Houston, TX neighbors are taking advantage of adding umbrella insurance coverage to their insurance policies.

If you’ve never heard of umbrella insurance, it is a form of liability insurance that extends the coverage of existing home and auto insurance policies. This "add-on" insurance can help you protect your assets from unexpected financial losses. Houston area homeowners with active insurance policies can add on extended coverages to pay when their current policies end. 

The insurance experts at Modern Risk Management in Houston, TX can explain the benefits and coverage of umbrella insurance policies in Texas. 

Why Texas Homeowners Should Have Umbrella Insurance to Protect Their Assets

Texas is no stranger to inclement weather, including severe thunderstorms and coastal hurricanes that cause millions of dollars in damage because of flooding each year. 

Umbrella insurance can help protect Texas families from financial losses related to natural disasters, car accidents, personal injury lawsuits, and other monetary damages that threaten your bank account. 

Texas umbrella insurance policyholders have peace of mind in knowing that they have additional insurance coverage to extend the limits of their current policies.

This add-on insurance can cover personal liability claims, property damage, and personal injury claims. In addition, umbrella insurance can help you and other covered policyholders cover legal fees, court costs, and other unexpected expenses related to a legal lawsuit filed against you.  

Get Umbrella Insurance in Texas

Don’t wait until an accident or natural disaster happens and threatens your savings. Instead, get an umbrella insurance quote from the experts at Modern Risk Management in Houston, TX.

Our knowledgeable insurance partners can help you and your family choose the best umbrella insurance plan to meet your needs. 

You can add umbrella insurance to any personal or business insurance policy that includes liability coverage, but which do you need? Those who work from home or run a business from their Houston, TX  home may need to add umbrella coverage to both their home insurance and commercial coverage.

You can’t buy umbrella insurance by itself. This type of secondary insurance requires a primary insurance policy to add it to as an extension of the liability coverage. That means that your primary policy must include a liability component to qualify for an umbrella policy from Modern Risk Management.

What does umbrella insurance do?

When you purchase a primary policy, such as home insurance or business liability, that policy contains a maximum liability payout. With home insurance, it could be as low as 10 percent of the home’s value. A business policy openly states its coverage.

If a guest to your home or office sustains an injury while visiting you, liability insurance covers their medical care costs and pays any settlement due to them. In many cases, the coverage on a home or business policy doesn’t fully cover the amount needed. The rest comes out of your pocket.

To avoid this, many individuals and businesses buy an umbrella policy. When the liability coverage on the primary or main policy fully pays out, the umbrella kicks in to pay the rest. A million-dollar umbrella policy costs very little annually but provides huge protection.

Contact Us

Contact Modern Risk Management serving Houston, TX, to learn more about adding umbrella protection to your insurance package. Let us help you protect your financial security.

Liability coverage is one of the most important types of coverage that you can get. If you don’t have an umbrella insurance policy, you may not have enough liability protection for a serious accident. If you’re interested in umbrella insurance, contact us at Modern Risk Management in Houston, TX. to find out more. 

Why Is Liability Insurance So Important?

Liability insurance protects you from having to pay out of pocket for property damage or injuries that happen because of accidents in your vehicle or home. When an accident is caused in your home, the homeowner is usually considered at fault for the accident. This means that you will have to pay the subsequent medical bills or pay for the damage to property from an accident, and it comes out of your own pocket. Liability insurance will pay for those bills so that you don’t get sued for them. With an umbrella policy, you get much more liability coverage than you would with your home and auto insurance policies. 

Adding Umbrella Coverage

Your home and auto insurance policies each have a small amount of coverage for liability, but it is generally not enough. If a serious accident were to happen, you would have to pay the amount over and above the maximum of your liability coverage. That’s where umbrella policies come in. They add more liability protection over your existing home and auto insurance policies so that the maximum is much higher. Then, this insurance coverage will be enough for a serious accident so that you don’t have to come up with the money. 

Get Umbrella Protection

Umbrella insurance boosts the liability coverage you have in your existing home and auto insurance policies. To find out more, call us today at Modern Risk Management in Houston, TX.

 

Most homeowners have peace of mind that their house and belongings are covered under their homeowner’s insurance policy in case of a disaster or if a guest to their home were to have an accident and suffer injuries. There is an additional policy, referred to as umbrella insurance, that homeowners can add to their existing policy that will offer even more protection.

An umbrella insurance policy provides liability protection of your property and even beyond it. For example, if you’re in your yard or the parking lot at the local Walmart store, you may still be protected from a potential lawsuit under your umbrella insurance policy. In the case that someone files a lawsuit against you that goes beyond the amount of your regular coverage, your umbrella insurance coverage will kick in. This means if your friend slips and falls on your property and breaks their leg and has a lengthy hospital stay that costs them $300,000, but your policy on your homeowner’s insurance only allows for $100,000, the umbrella insurance will pick up the balance, so you don’t have to.

In the current climate of today’s lawsuit-happy people, it’s a great idea to have an umbrella policy to give you the extra peace of mind you deserve. Umbrella policies will protect your existing assets and even future earnings if you lose a court case. Some things the umbrella policy can cover include if you are the recipient of a lawsuit for accidents on your rental properties, a false arrest, malicious prosecution, and even slander or libel lawsuits. It will also cover shock or mental anguish due to one of these types of circumstances.

To obtain the best umbrella insurance policy for your home or business, you will need to enlist the help and guidance of a trusted and experienced insurance agent. In Texas, contact the insurance agents at Modern Risk Management, located in Houston, TX.