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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. 

When it Rains, It Pours: Why You Need Umbrella Insurance

Tomball, TX is a vibrant community known for Southern charm, friendly residents, and beautiful landscapes. While life in Tomball can seem idyllic, unexpected accidents can happen to anyone.

Accidents and mishaps can lead to liability claims that can turn a peaceful existence into a financial nightmare. Umbrella insurance is a supplementary form of insurance that can provide a safety net to help protect your and your family’s assets and shield your financial future from unexpected storms. 

Well-informed agents at Hastings Insurance Agency LLC in Tomball, TX can help you choose an umbrella insurance policy to meet your needs. 

When It Rains, It Pours – Get Umbrella Insurance 

Get umbrella insurance for liability protection, asset protection, and peace of mind. Liability insurance protections can shield you from financial damages related to lawsuits or property damage claims. It can also protect your valuable assets, including your home, savings, and investments, in the event of a lawsuit. 

How to Get Umbrella Insurance

The first step to getting an adequate umbrella insurance policy is to evaluate your current insurance policies and calculate how much additional coverage you need. 

A licensed insurance agent can guide you through the process by helping assess your risk profile and offering a free umbrella insurance quote. 

An umbrella insurance quote contains important details about add-on insurance coverages that extend the limits of your existing home and auto insurance policies. Insurance agents can help you choose an umbrella insurance policy that meets your insurance needs and aligns with your budget. 

Reach Out To Us

Don’t get caught in the rain without an adequate umbrella insurance policy. Contact a knowledgeable agent at Hastings Insurance Agency LLC and get an umbrella insurance quote today! 

5 Most Common Mistakes When Buying Umbrella Insurance For The First Time

Most people are aware that they require insurance to protect their homes, cars, and health. However, far too few people understand the value of umbrella insurance. Umbrella insurance protects you against major liability claims and lawsuits, which can quickly deplete your savings and assets. If you’re considering buying umbrella insurance, Great Southern Agency in Tomball, TX can help guide you on five mistakes to avoid.

Umbrella Insurance: Mistakes To Avoid

1. Not Understanding What Umbrella Insurance Covers

Umbrella insurance is intended to protect you from large liability claims and lawsuits. It usually covers expenses for bodily harm, property damage, and certain personal liability situations. However, umbrella insurance does not cover everything; be sure to read the fine print to understand what is and is not covered.

2. Not Reading The Fine Print

When purchasing umbrella insurance, it is critical to carefully read the policy to understand what is and is not covered. If you have to file a claim, you may be faced with unexpected out-of-pocket expenses.

3. Buying The Wrong Amount Of Coverage

Many people underestimate how much umbrella insurance they require. A good rule of thumb is to purchase coverage equal to 1-2 times your net worth. This ensures that you are adequately protected in the event of a major liability claim or lawsuit.

4. Lying Or Omitting Important Information

It is critical to be truthful about your assets and income when applying for umbrella insurance. If you lie or omit critical information, your policy may be voided if you need to file a claim.

5. Going With The First Policy You Find

Before purchasing umbrella insurance, it is critical to shop around and compare policies. Because not all policies are created equal, find one that meets your needs and budget.

We Are Here To Help!

Umbrella insurance is crucial for financial protection, but only if you avoid these five mistakes. Great Southern Agency can help you find the right umbrella insurance policy for your needs in Tomball, TX. Contact us today for a free quote.

How Umbrella Insurance Works

When you have auto and home insurance already, you might not have all of the protection you need to keep you from being financially vulnerable. It’s a good idea to have an umbrella insurance policy in order to leave yourself better protected in the event of an accident. When you want to be well-protected, call us today at Great Southern Agency in Tomball, TX to learn more about umbrella insurance and to get started. 

Umbrella Insurance and Liability

When you own a home and a vehicle, you have liability for certain accidents that can happen. In your home, it’s possible for a third party to come to your home and to have an accident there that leaves them injured, and you would be liable for their medical bills. In your vehicle, auto accidents are common, and you are liable for paying for the medical bills of those who are injured when you are at fault for the accident. Umbrella insurance adds liability coverage onto both of these policies so that you are better protected against both of these types of accidents with just one policy. 

Insurance Payments

When there is an accident in your vehicle or in your home, and you are liable for paying for someone’s injuries, your home or auto policy will come into the picture first. The home or auto policy will pay for the resulting bills up to its stated maximum payment amount. After that, your umbrella policy will step in to pay what is left over so that you aren’t left holding the bill for overages. This can save you a lot of money with better liability coverage.

Get Your Umbrella Policy

If you want to be better covered for liability, it’s smart to have umbrella insurance. Call us at Great Southern Agency in Tomball, TX.

Umbrella insurance FAQs

Umbrella insurance is one type of insurance that confuses most people. They don’t know what it is and if it is worth having. At Great Southern Agency in Tomball, TX, we are independent insurance agents and we work for our clients, not for an insurance company. You can count on us explaining things to you so you have the information you need to make an educated decision. 

What is umbrella insurance?

Umbrella insurance is excess liability insurance. It supplements other insurance policies that you have with liability coverage. Some of the policies that have liability are home, condo, renters, auto, boat, and motorcycle. In the event that you have to use your liability coverage, your primary policy will cover to its limit and then your umbrella policy will kick in. 

Who needs umbrella insurance?

Almost everyone can benefit from umbrella insurance. Do you own a home? Do you have additional assets? Have you put aside some savings? Do you have a retirement account? Protecting all of these things is vital. What are the liability limits on your insurance policies? Will they leave you holding the bag in the event you need to use your liability protection?  Once you have the answer to these questions, you should be able to determine if umbrella insurance is a good option for you. 

Can I buy umbrella insurance without having other insurance?

No,  you can’t. Umbrella insurance is not a stand-alone policy. It is additional liability coverage in addition to the liability coverage that you have on another policy. 

Do only the rich benefit from umbrella insurance? 

No, it doesn’t matter how many assets you have, if you want to protect them, umbrella insurance is an affordable option. 

Call Great Southern Agency in Tomball, TX when you are ready to talk about how umbrella insurance might be right for you.

Can Umbrella Insurance Really Protect Me?

Insurance protects individuals against many things that can happen, such as fire, accidents, lawsuits, and more. However, sometimes insurance policies are not enough to cover all the costs associated with a claim. More and more people in Tomball TX choose to purchase umbrella insurance coverage, which protects them against the costs involved with a claim that basic insurance policies do not cover. Umbrella insurance can protect you, and the agents at Great Southern Agency can explain how. 

What Is Umbrella Insurance Coverage? 

To fully understand if umbrella insurance can protect you, you must first know what an umbrella, insurance policy is and what it covers. Umbrella insurance is an add-on policy to your existing liability insurance coverage. This policy comes into play when you reach the limits of your liability coverage on home or auto insurance. For example, when a claim is filed, your primary insurance policy only covers so much, the umbrella policy will cover and pay for the remaining balance. 

How Does Umbrella Insurance Protect Me? 

Umbrella insurance can protect you financially and protect all of your assets. For example, when a lawsuit or claim is filed against you, your umbrella insurance policy covers what your primary insurance plan does not. If you did not have umbrella insurance, you would be financially responsible for the amount of money you are liable for that your insurance company does not pay. 

What Does Umbrella Insurance Cover? 

Umbrella insurance offers additional coverage protecting against claims where you are found liable. Coverage includes bodily injury to others and damage to another person’s property.

Umbrella insurance can help protect Tomball, TX residents against financial responsibility associated with claims where they are held liable. The experts at Great Southern Agency can provide additional information as to how umbrella insurance coverage can protect you and your assets. 

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.