Personal Umbrella Coverage in Texas

Umbrella insurance adds on to your auto and homeowners liability policies to provide you with extra insurance protection in case you are sued.  (If you don’t own a home, it can provide you protection on top of your condo or renter’s insurance.)  You can’t purchase umbrella coverage if you don’t have the proper underlying policies.  Here’s how umbrella coverage works:  Let’s say you have liability insurance of $100,000 and you have a $1 million umbrella policy.  Your underlying liability coverage would pay the first $100,000 and your umbrella would cover all damages from $100,001 to $1 million.  So if you negligently cause damages to someone in the amount of $250,000, your primary liability coverage would pay $100,000 and your umbrella coverage would pay the remaining $150,000 in damages.  

These policies are not very expensive in relation to the protection they can afford individuals.  People usually buy them when they have accumulated assets they wish to protect. Umbrella coverage, if nothing else, offers psychological comfort.  It allows peace of mind that you’ve done all you can to protect your assets in case you make a mistake.  

If you’re ever resolving a case against an at-fault person and you’re able to receive the entire liability limits from the insurance company, you should always investigate and try to determine if there’s an additional umbrella policy available.  If there is one, that policy might very well be an additional source of funds to compensate you for your injuries.


Contact the Anderson Law Firm online, or by calling 817-294-1900 for a free consultation on your rights.

Mark A. Anderson
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Board Certified Personal Injury Lawyer in Fort Worth, Texas