Key Benefits & Coverage

• Excess Liability: Pays for medical bills, property damage, and legal settlements when costs exceed your standard policy limits, often starting at $1 million.
• Legal Defense: Covers attorney fees and court costs, even if a lawsuit is groundless.
• Expanded Protection: Covers incidents typically excluded by standard policies, such as libel, slander, false arrest, and invasion of privacy.
• Worldwide Coverage: Most policies protect you for incidents that occur anywhere in the world, not just in Texas. 

Typical Costs in Texas

Umbrella insurance is generally considered high-value because it offers large amounts of coverage for a relatively low premium. 

Texan Insurance

• Estimated Annual Premium: Between $150 and $400 for the first $1 million in coverage.
• Additional Coverage: Each additional $1 million increment typically costs significantly less, often between $50 and $100 more per year. 

Who Should Consider It?

Experts suggest evaluating your need based on your assets and "risk profile". You might need it if you: 

Own a Home or Rental Property: High-value properties increase the risk of large liability claims from guests or tenants.

• Have Risky Amenities: Swimming pools, trampolines, or certain dog breeds can lead to high-cost injury claims.
• Are a Frequent Driver: Given Texas's busy highways, car accidents involving multiple vehicles or serious injuries can easily exceed standard $250k/$500k auto limits.
• Want to Protect Future Earnings: If you are sued for more than your insurance covers, your future wages could be garnished to pay the remainder. 

Important Considerations

• Underlying Requirements: Most Texas insurers require you to carry high liability limits (e.g., $250,000/$500,000 for auto) on your primary policies before they will issue an umbrella policy.
• Exclusions: Standard umbrella policies usually do not cover your own injuries, damage to your own property, intentional criminal acts, or business-related liabilities (which require Commercial Umbrella Insurance).