The purpose of an umbrella insurance policy is to extend the range of coverage above the limits you already have. Insurance companies will typically offer auto and homeowners insurance up to around $500,000 for liability. This is enough to cover most claims. However serious accidents can result in lawsuits above $500,000. An umbrella policy can give you an extra layer of protection for your assets.

An umbrella policy is not just for the wealthy. As a Houston Farmers insurance agent I suggest an umbrella for many people. Some examples include customers with a swimming pool or trampoline. Having assets that could be lost to a lawsuit is a classic indication that an umbrella should be considered. An umbrella is inexpensive protection for the amount of protection it provides. As an example you might pay $2,000 per year or more for $500,000 of liability coverage on a couple cars and a home. For a few hundred more you could add an additional million in coverage!

Umbrellas dont cover everything. If you own a business, a personal policy will probably not apply. Punitive damages, intentional acts of damage, and other exclusions may apply.

Most companies will require a certain limit of liability coverage on your existing policies before they will offer an umbrella. It is often a good idea to have all your policies with the same company that writes the umbrella. This could result in discounts and will avoid having to collect and submit the other policies to the umbrella company. Please consult a good insurance agent and have all the terms, coverages, and conditions explained if you want this type of policy. Customers in Texas can call my Houston insurance office at 281-537-2700 for more information.