Comparing Excess Liability vs Umbrella Insurance for Texans


Is excess liability the same as umbrella? While similar, these coverages are different forms of protection and homeowners need to know the difference if they are to properly protect against potential losses. Comparing excess liability vs umbrella insurance can help homeowners in Texas save thousands of dollars when facing a major loss due to liability. Learn more about the difference between umbrella and excess liability to safeguard your finances against potential liability concerns.

Exploring Excess Liability vs Umbrella Insurance in Texas

Seeking the right coverage for your needs is important no matter what, but especially when you are protecting against losses so large your personal assets can come into play.

The comparison of excess liability vs umbrella insurance for Texans is an important one because despite working in similar ways, they are different protections. Learn more about the two and which is best for your needs:

Excess Liability Coverage

Also known as excess umbrella liability insurance, your coverage picks up where your liability coverage stops. This is in case you are facing a loss that is beyond your policy limits but must be accompanied by another insurance policy, whose protection comes first.

Umbrella Insurance

Often confused as umbrella excess liability insurance, an umbrella policy provides you with a wide range of liability protection when such losses exceed the liability found in a home or auto insurance policy. Umbrella insurance can often provide a great amount of protection for a lower cost.

Excess Liability Coverage vs Umbrella

To simplify things, the best coverage between excess liability and umbrella insurance will vary from person to person. This is why it’s important to shop around and determine which protection best protects you from the risks you might face at the lowest cost possible:


Expenses Continue to Rise

The importance of having enough coverage continues to increase as both the cost of medical expenses and restoring property damage also continue to rise

America is home to one of the most expensive healthcare systems on the planet and the cost of labor and repair for physical damage, are also rising.

Liability can come in many forms but if you are found liable for either loss involving bodily injury or property damage to another party, you’ll need to find a way to restore these losses.

Failing to have adequate coverage can cost you in a variety of ways. Here are common, everyday scenarios in which excess liability and umbrella insurance can protect you:

  • You’re a homeowner and someone is injured while visiting your home.
  • You host gatherings at your home, especially with high-risk features such as a swimming pool.
  • You routinely have help at your home such as a housekeeping service or landscaping service.
  • You have children, especially those of driving age.
  • You have several high-valued assets including things such as a boat, luxury vehicle, or luxury home.

A car accident in which the damages exceed your auto insurance coverage, you’re accused of libel on the Internet…the list goes on and on.

Liability can be an expensive loss to restore and only exacerbated further due to the potential for legal action.

The U.S. legal system is ranked as the most expensive in the world and facing such financial downfalls in the midst of trying to pay to restore a loss can be detrimental to your finances and result in the loss of assets including your home.

Deciphering between excess liability vs umbrella insurance should always end in the same place: providing your household with enough protection to keep you financially stable.


What You’re Protecting

Though there are several ways you may find yourself liable for the loss of another, there are three common issues that can arise:

  1. Someone injures themselves while visiting your home.
  2. You’re involved in a car accident in which losses beyond your auto policy’s limits occur.
  3. You or someone in your household is responsible for the injury or destruction of property to another party.

But what exactly are you protecting when these types of losses occur? The simple answer is anything and everything you have that is of value.

Let’s say you have a home worth $700,000, an investment portfolio worth another $500,000, luxury vehicles worth $200,000, and watercraft totaling $100,000.

If you are found liable for someone’s loss and it’s severe enough to reach, for example, $2.5 million, but you only have $1 million in coverage, those assets are now on the line.

Never mind the fact that you will also have legal expenses to pay in many cases, you could lose your home, your investments, your vehicles, and more.

The bottom line is that just because you have coverage doesn’t mean you have enough and just because a loss is so severe it surpasses whatever coverage you do have, it doesn’t mean it goes away.

Paying out of pocket can mean a lot more than getting hit with a hefty bill and a serious loss can cost you assets, time, money, and much, much more.


Protecting High-Valued Properties With Umbrella vs Excess Liability in Texas

Debating between umbrella vs excess coverage? Since 2005, Freedom Insurance Group has been helping Texans avoid the pitfalls of liability losses and retain their hard-earned personal assets.

What sets us apart from the rest?:

  • Our insurance center is home to over 25 top-rated insurance brands in Texas which allows us to shop and compare your coverage against more insurance solutions.
  • By comparing your rates and not working with a singular insurance carrier, we help our clients save an average of 40% on their coverage.
  • More brands mean more options for you in more than one way. You’ll not only receive the best options for liability protection but also bundling and discounts.

It’s simple. We succeed when you save money and we deliver savings because we aren’t bound to a singular brand but rather to finding you the best solution for your coverage needs.

Contact us at (972)798-3769 or ask an agent and let us help you in comparing excess liability vs umbrella insurance today!

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769


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