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Can I Just Buy an Umbrella Insurance Policy?

At Hastings Insurance Agency LLC, we often tell our Tomball, TX customers about umbrella insurance, a secondary type of insurance that increases their liability coverage with a $1 million policy. Learning that, we get the follow-up question, "Can I just buy an umbrella policy?"

Purchasing an Umbrella Policy 

No, the policyholder must own a primary policy that contains a liability component before purchasing an umbrella policy. Any insurance policy that includes a liability component qualifies so that you can use any of the following as your primary policy: 

  • Home 
  • Auto 
  • Boat and other watercraft 
  • Business/Commercial 
  • Commercial auto 
  • RV/motorhome. 

If the insurance policy contains a liability component, it can function as the primary policy.

How Umbrella Coverage Works

Because it offers secondary coverage, it pays out second if you have an accident for which you’re at fault or someone incurs an injury at your home or on your boat. Regardless of what triggers the liability, your primary coverage pays out first, and the umbrella policy only kicks in if the settlement exceeds the policy maximum of the primary policy.

Here’s an example. Let’s say a policyholder owns auto coverage with a liability component of $50,000 and a million-dollar umbrella policy. If they cause an accident in Tomball, TX that injures five people, the auto policy pays out first. In our example, the hospital bills for the injured total $125,000. Their settlement comes from the primary auto policy first, providing the first $50,000. The other $75,000 comes from the policyholder’s umbrella coverage. 

Contact Us to Add Umbrella Coverage Today 

Contact Hastings Insurance Agency LLC to add umbrella insurance to your insurance package. Let us help you protect your financial security.