Umbrella insurance is designed to make sure residents of Highland Village, TX don’t have to pay out of pocket when there’s an accident. These policies can help business owners keep their doors open or ensure individuals don’t have to liquidate their assets. There are a few things you need to know about how your coverage will work when it comes to property damage, though. 

Does Umbrella Insurance Cover Property Damage?

In most cases, yes, umbrella policies will cover property damage. This includes damage to another person’s car or property if there’s an accident. Typically, it works as a secondary policy. Your auto or home policy will kick in first to cover damages up to the maximum amount, and then your umbrella policy will kick in to help cover any remaining balance. 

It’s Liability Coverage

Always remember that these policies work as personal liability coverage. They will cover the other person’s property damage, but not your own. That means if you’re in a car accident and both vehicles are damaged, your policy will only help pay for the damage to the other person’s property. You’ll have to use your auto policy or personal funds to pay for damages to your property. 

Exclusions Apply

Every type of insurance has a list of exclusions, including these policies. The main exclusion is coverage for intentional or malicious acts. That means if the accident is caused intentionally by you, your company will likely deny the claim. An agent here at Thompson Insurance Services can help you learn more about exclusions listed on your policy. 

Here at Thompson Insurance Services, our agents pride themselves on working with customers. We’ll take the time to explain your policy to you, ensuring you know how it works and what it will cover. Contact us today to learn more. We’re currently serving the Highland Village, TX area. 

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