Personal insurance policies are designed to not only protect your property but also your finances. While both auto and home plans include some level of liability coverage, it's not enough to cover the full cost of damages. For this reason, many individuals choose to purchase umbrella insurance. Take a closer look at this type of coverage below.

What Is Umbrella Insurance?

Umbrella insurance is essentially an extended liability policy that increases your overall protection against lawsuits. If you're found legally liable for damages, including medical bills, then your umbrella policy will kick in after the liability limits have been reached on the peril-specific plan.

Umbrella insurance is commonly used in combination with homeowner or auto insurance. For instance, in the aftermath of a car wreck, the other party can sue you for medical expenses and lost wages. If the judge determines that you are in fact the responsible party, your auto policy will pay for all the costs up to its liability coverage limit. You would have to pay anything outside that limit out of pocket unless you have an umbrella policy, which would pay up to its separate coverage limit (usually $1 million).

The additional liability protection can prevent you from the suffering the financial burden of a lawsuit. Along with covering the payout, this type of policy can also cover the cost of legal fees. Additionally, its protection extends to your other assets, like your home and vehicle, because if you're unable to pay the required amount, the court can liquidate your assets to cover the cost of damages.

Who Can Benefit From Umbrella Insurance?

While everyone can benefit from umbrella insurance, it's particularly important for individuals who own property or have investments to buy a plan. The standard rule across the insurance industry is that a customer should purchase an umbrella policy if their assets exceed their other policies' liability coverage. For instance, if your homeowner's insurance offers $500,000 in liability protection but all of your assets combined, including home, auto, and retirement, exceed that amount, then umbrella insurance is a wise purchase.

Keep yourself and your assets protected with a top-quality umbrella insurance policy from Integrity Insurance Solutions in San Marcos, TX. The independent agency works with a large number of insurance companies to ensure their clients have the widest selection of affordable policy choices. Known for the commitment to excellence, the team offers a personalized experience that's designed to find each individual a coverage plan that meets their specific needs. Request your free quote today by calling (512) 396-2211, and learn more about their specialties by visiting them online.