How Does Umbrella Insurance Policy Work and Why Do I Need It?

Umbrella insurance provides additional coverage to your insurance policies. You can get this insurance when you have a home, auto, boat, or other coverage. As the name ‘umbrella’ implies, umbrella insurance provides maximum coverage when other policies do not apply. For instance, if you are involved in an accident, and your auto insurance covers half of your liabilities, umbrella insurance can substitute for the rest.

Here are common reasons you may need umbrella insurance in Austin, TX.

Home Accidents

Home accidents are many, and umbrella insurance can help you sort out some of them. For instance, you can be liable for a guest getting injured in your swimming pool or sliding in your landscapes. Your kid may even throw a party in your absence, and one of the guests gets injured. If your home insurance policy fails to cover such liability, umbrella insurance can come in handy to help you sort out the medical bills.


Umbrella insurance may be helpful when facing lawsuits, whether at home, work, or in society. For instance, if you were involved in an accident and some people sustained injuries, you may face a lawsuit if you were liable for the accident. In such a situation, umbrella insurance can cover any excess amount that your auto accident policy doesn’t.

Defamation Charges

You may need umbrella insurance if you are a blogger or a contributor to a magazine. If someone sues you for defamation, your umbrella policy can help cover any damage liability you face.

Contact The Policy Source Today

At The Policy Source, we understand the importance of umbrella insurance, so we help our clients understand and acquire the right umbrella insurance based on their needs. If you need umbrella insurance in Austin, TX, and need help figuring out where to start, contact us today for guidance.