When you contact Pound Insurance about umbrella insurance for your Garland, TX home or business, it might surprise you to learn that you need to buy a primary insurance policy with liability coverage before you can qualify for an umbrella policy. You can’t buy an umbrella policy by itself, so read on to learn to which of your existing policies you can add this helpful coverage.
What policies can you add umbrella insurance to?
You can add the secondary type of insurance – umbrella insurance – to any policy that already contains liability coverage. That means you can add umbrella coverage to the following:
- Home insurance
- Auto insurance
- Boat insurance
- RV insurance
- Motorcycle insurance
- Business liability insurance
- Commercial auto insurance
Adding umbrella coverage to these policies affords you added liability coverage.
How much does umbrella add to your existing coverage?
An umbrella policy typically adds $250,000 to $1 million in liability coverage. Because the policy costs so little in premiums, most people choose the million-dollar policy. This ensures they have all of the umbrella coverage that they need.
When the liability coverage on their primary policy pays out, the umbrella coverage kicks in. It pays the remainder of the settlement, up to the policy maximum.
For example, if your home insurance provides liability coverage equal to 20 percent of the value of your home and the home value equals $200,000, then the home policy provides $40,000 of coverage. Once the liability coverage pays out that $40,000, the umbrella policy you purchased begins covering the rest of the settlement.
Why might you have a settlement that large? If someone incurred a serious injury, such as a broken bone, from a fall at your home or you libeled or slandered someone, you could owe a large settlement.
Give Us A Call
Contact Pound Insurance, serving Garland, TX, for more information on umbrella insurance. Let us help you add this useful policy to your package.