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Introduction to Umbrella Insurance

You may have heard the phrase, “Saving for a rainy day.” An umbrella insurance policy saves you from having to dip into that rainy day fund.

You can purchase an umbrella policy to add to the liability coverage you receive from home, renter’s, auto, RV, boat, or business policy. You cannot purchase an umbrella policy by itself from Great Southern Agency or any other insurance agent. It is a secondary type of insurance. You must own an appropriate primary insurance policy to qualify for an umbrella policy.

With an auto, boat, or RV coverage, you choose your level of coverage. For auto and motorcycle insurance, your state sets a minimum required amount you must purchase. Over and above that, you can add as much coverage as you want as long as you are willing to pay the premiums for it.

With home insurance, if you choose a standard homeowner’s policy for your Tomball, TX home, you receive between 10 to 20 percent of the home’s value as to liability coverage. That probably will not cover much since the average hospital stay costs about $15,000. If your home value is about $100,000, you would have between $10,000 to $20,000 as liability coverage. If more than one person gets hurt in the accident or peril at your home, you will have to pay out of pocket for the damages.

Umbrella insurance solves that problem for you. You can easily afford a million-dollar policy since this type of secondary insurance costs little.

Contact Great Southern Agency serving the Tomball, TX area for more information on umbrella insurance and how it can protect your finances. We can help you find the right combination of policies to protect your future.