WEDNESDAY, JANUARY 4, 2023
You’ve probably had agents suggest umbrella insurance to you, but many people are unfamiliar with what it is. Umbrella insurance is simply an extra layer of liability coverage on top of your existing policies, such as home, auto and boat insurance. If a claim exceeds the amount of liability coverage you own, umbrella insurance can contribute to the leftover sum so you don’t have to pay it out-of-pocket.
Let’s explore a car accident as an example since 85 percent of umbrella insurance claims are associated with collisions. If you cause an accident that totals the other driver’s car and also injures him or her, the cost of damages and medical bills could easily exceed the limits of your auto policy. For instance, say the damages cost $300,000 and your liability limit is $100,000; in such a case, an umbrella policy can cover the leftover $200,000 to save you from having to personally pay it off.
This coverage is also extremely useful for homeowners, particularly ones who enjoy having guests over. Many parents choose to buy this coverage if they have a pool or trampoline because of the higher risk of a child getting injured. But something as simple as a guest tripping and falling down your stairs could result in a costly lawsuit. 
You may think that you don’t need an umbrella policy because you don’t have enough money to fund a legal settlement. However, you can be sued for a greater value than what’s in your bank account. In fact, your retirement funds, savings, investments, future earnings, house, car and additional property are all at risk if you don’t have the money or insurance to pay for a large settlement.
It’s highly recommended that anyone who owns property should purchase umbrella insurance as part of their portfolio. It’s frequently sold in increments of $1 million, which typically costs around $200 per year. A small price to pay for the value of the additional security.
Ask an agent about increasing your protection. Call Lone Star Insurance Group at 833-FOR-LSIG for more information on Lubbock umbrella insurance.
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