What is an umbrella policy?

An umbrella policy in Texas is an insurance policy that provides additional coverage beyond the limits of the primary policies, such as car, homeowners and boat insurance. An umbrella policy pays out in the event of a lawsuit or judgment against the policyholder. In Texas, an umbrella policy typically covers up to a million dollars of expense over and above the limits of the primary policies. An umbrella policy covers a wide range of potential liability, such as accidents that cause injury to others or damage to their property, libel, slander, false arrest or malicious prosecution. It will also pay for defense costs and attorney fees if you are sued. Umbrella policies are often recommended for those with higher-than-average risk of liability due to their occupation or lifestyle. For example, if you own a business, have several cars, own rental properties, work in a hazardous profession, or take part in high-risk activities such as hunting, you may want to consider an umbrella policy. While umbrella policies can be expensive, they provide more comprehensive coverage than the primary policies. An experienced insurance agent can help you find the right policy to protect your financial well-being.

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What is an umbrella policy?

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