UMBRELLA INSURANCE

Do You Need Umbrella Insurance?

Umbrella insurance acts as a sort of supplement to homeowner’s or auto insurance. The main purpose is for it to protect you from major claims that exceed your other policy limits. Umbrella coverage is triggered when funds from your other policies are exhausted. An umbrella policy does have a policy limit, which is usually a minimum of $1 million. Salt Jacket is here to help you understand and navigate umbrella insurance in Texas, New Mexico, Arizona, Oklahoma, Arkansas and Colorado.

Umbrella coverage is available when you buy your insurer’s maximum auto and homeowner’s insurance coverage. Should you cause an auto accident, and the damages exceed your policy limits, umbrella coverage comes into play up to its limits.

In some cases, umbrella insurance can act as a primary insurance for risks not covered by standard liability coverage. Some examples of these risks include libel and slander. This additional benefit is for people with significant assets at a higher risk of being sued. A large judgment against you can cause you to lose your home, car, bank accounts, investments and even future income. This is unlikely to happen with umbrella insurance in place.

Other types of insurances are more costly compared to umbrella coverage. And other factors, like your age, driving record, credit score and claims history can also lower the rate you pay for umbrella insurance.