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Personal Umbrella Insurance

Personal Umbrella Insurance Information

Personal Umbrella Insurance in Sherman, TX

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Many forms of insurance (e.g., home and auto insurance) come with a liability coverage component.
The primary purpose of liability insurance is to offer financial protection in case of accidental injuries or property damage to others. 

However, liability coverage has dollar limits and can be exhausted by a significant claim, leaving you responsible for the remaining costs. Personal umbrella insurance can be crucial if your existing liability insurance runs out, kicking in when other liability limits are reached.

 Personal Umbrella Policy Explained 

Umbrella insurance offers extra liability coverage beyond the limits of your existing policies, such as car or homeowners insurance. If you’re at fault for injuries or damage, and your other policies fall short, an umbrella policy may help pay what you owe. It’s like having an extra layer of financial protection that shields your savings and assets from unexpected legal expenses and claims.

How Much Personal Umbrella Insurance Do I Need?

The following tips can help you decide how much umbrella insurance you should consider:

  • Evaluate your risk exposure. Assess your lifestyle, assets and potential risks. Consider factors such as homeownership, driving habits and recreational activities.

  • Review existing policies. Check your auto, homeowners and other liability policies. Note their coverage limits. Personal umbrella insurance can kick in when these limits are exceeded.

  • Calculate your assets. Estimate the value of your assets (e.g., home, savings, investments). Your umbrella coverage should at least match this total.

  • Consider future earnings. Think about your potential future income. If youre sued and your earnings are garnished, umbrella insurance can protect your future income.

How Much Does a Personal Umbrella Insurance Policy Cost?

The following factors can influence the cost of personal umbrella insurance:

  • Coverage amountThe more coverage you choose, the higher the cost. 

  • LocationInsurance rates vary by state, so where you live impacts the cost.

  • Number of insured assetsYour premium may be higher if you own multiple homes, cars or boats.

  • Household membersThe more people the policy covers, the greater the cost.

  • Personal risk factorsYour profession, credit and lifestyle may influence pricing.

Learn More

Diamond Insurance Group prides itself on serving the communities of Sherman, Denison, Van Alstyne, Melissa, Anna, Gunter and beyond. Contact us today.

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