The Texas Umbrella Insurance Policy is generally defined as Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies.
Simply put, an personal umbrella insurance policy takes over where your auto, and home insurance policies leave off. The coverage provided on an umbrella policy is excess over your usual and primary insurance policies. Generally, umbrella policies cover one home and one car in the basic policy. Additional homes and cars are extra.
Policy Term
Most policies are issued in 12-month policy terms and automatically renewed by insurance companies. The exception to this is a policy is cancelled by the insured or non-renewed for claims by the insurance company.
Umbrella Deductible?
Most umbrella policies have a self-insured retention or retained limit built into the policy. This means that if you exhaust the coverage in your underlying policy, you will have to pay a $1000 retained limit before your umbrella coverage begins.
Underlying Liability Requirements
Most umbrella require that you carry at least a minimum auto insurance bodiliy injury limit of $250,000 per person/$500,000 per occurrence and property damage liability limit of $100,000 per accident. The minimum home insurance liability requirement is $300,000 liability.
Specialty Vehicles
Generally, Watercraft under a certain length can be added to a personal umbrella insurance policy. Special Maritime exclusions may apply for watercraft over 40 feet long.
Motorcycles, ATVs, Golf Carts, and Rental Properties may be added to umbrella policies. Each require special care depending on the insurance carrier underwriting the policy. As with all other policies, special underlying limits are required to cover them on an umbrella policy. Most insurance companies set limits to the number of rental properties that can be added to an umbrella.
Business Umbrella Insurance
Persons that live on farms and ranches are best suited with commercial umbrella insurance. Due to the dual nature of most small associated with many farms and ranches.
Exclusions
As with any insurance policy, the umbrella insurance policy can carry exclusions coverage for high risk drivers, special or high risk vehicles, or even high profile occupations. Therefore it is important to discuss your insurance needs with an agent that specializes and knows how to properly write umbrella insurance policies.
For mor information regarding umbrella insurance policies, contact us using the form below or call us at 214-717-4326.
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