Umbrella insurance is one of the most misunderstood types of coverage available to consumers today. At All-Tex Insurance, serving Granbury, TX, we regularly encounter clients who have incorrect assumptions about umbrella policies that prevent them from securing this valuable protection for their assets and future earnings.
Myth: Umbrella Insurance Only Benefits Wealthy People
Many people believe umbrella insurance is exclusively for millionaires, but this misconception costs average families significant protection. Umbrella policies typically start at just $150 to $300 annually for $1 million in coverage, making them accessible to most homeowners. Consider this scenario: You cause a serious car accident resulting in $800,000 in damages, but your auto policy only covers $300,000. Therefore, you’re personally liable for the $500,000 difference. An umbrella policy would cover this gap, protecting your savings, home equity, and future wages from garnishment.
How Umbrella Coverage Actually Functions
Umbrella insurance doesn’t replace your existing policies, but extends them. It kicks in only after your underlying coverage limits are exhausted on your auto, homeowners, or other primary policies. The umbrella also provides broader coverage than your base policies, often including protection against libel, slander, and false imprisonment claims that standard policies exclude. Additionally, umbrella policies cover legal defense costs, which can reach tens of thousands even for frivolous lawsuits.
Understanding Your Real Exposure
Your liability exposure extends far beyond your current net worth. Courts can garnish future earnings for years or decades after a judgment, making umbrella coverage essential for protecting your financial future.
Don’t let misconceptions leave you vulnerable to catastrophic financial loss. Contact All-Tex Insurance to learn how affordable umbrella coverage can protect your assets and peace of mind. We’re currently serving Granbury, TX.
