Umbrella insurance is a secondary type of insurance that kicks in when primary policies reach their limits. Umbrella insurance also covers unusual cases and expenses that are covered by primary insurance. This type of insurance is like additional protection that has many benefits. However, there are also certain limits that need to be taken into consideration. Thompson Insurance Services, an insurance serving clients in Highland Village, TX, prepared a list of pros and cons of umbrella  insurance:

Pros and Cons of Umbrella Insurance

Here is a list of advantages and disadvantages of umbrella insurance. 

Pros:

• It protects your assets. If your auto or home insurance gets exhausted, you can be left with a huge amount of expenses to take care of. However, if you have umbrella insurance, these expenses will be covered.
• There are flexible coverage options. With umbrella insurance, you can scale up or down your insurance needs depending on the primary insurance options. For example, if your primary insurance policy does not cover false arrest or libel, umbrella insurance will cover them. 
• It protects you from expensive lawsuits. Today, getting a lawsuit is quite common, especially if you are a public figure or own a business. Umbrella insurance helps you protect yourself from liability claims.

Cons: 

• It is not available without primary insurance. In order to purchase umbrella insurance, you have to buy a home or auto liability first. 
• It is an additional expense. Umbrella insurance costs money, and it can be expensive. 

Thompson Insurance Services in Highland Village, TX – We Help You Get Insurance You Really Need 

Umbrella insurance is not a mandatory type of insurance, meaning that you do not have to purchase it. However, it is still good to have it in order to be fully protected against unexpected circumstances. If you are thinking of getting this type of insurance, and you are looking for a trustworthy insurance agency, Thompson Insurance Services is ready to assist you. Do not hesitate to call us – we are always here for you.