Umbrella Insurance – How Does It Work?

Julie Akin • March 28, 2022

What Is Umbrella Insurance?

Umbrella insurance is a type of personal liability insurance that can be essential when you find yourself liable for a claim larger than your homeowner's insurance or auto insurance will cover. If you own a boat, RV, Motorcycle or ATV, an umbrella insurance will also pick up where your primary insurance leaves off.

An umbrella policy even covers certain liability claims those policies may not, such as libel, slander, and false imprisonment. And if you own rental property, umbrella insurance provides liability coverage beyond what your landlord policy covers.

How Does an Umbrella Policy Work?

Here are some examples of incidents an umbrella policy could cover if your homeowner's insurance or auto insurance wasn’t enough:

Your dog runs out of the house and bites a neighbor who was walking by. Your neighbor sues you to cover his or her medical bills, lost wages, and pain and suffering.
Your son gets into a fight at school and punches another boy, breaking his nose. The boy's parents sue you.
You cause a multi-car accident and your auto insurance property damage coverage isn’t high enough to replace all 10 accident victims' vehicles. Nor is your personal liability coverage high enough to pay for their medical bills.
You send sandwiches to your daughter's school for a field trip lunch. Several students develop food poisoning and their parents sue you.
Your teenager throws a party at your house while you’re out of town. Someone brings alcohol to the party, and one of the guests is arrested for driving under the influence on the way home. You are sued.

You may have also noticed that, even though an umbrella policy acts as coverage above and beyond your homeowners and auto insurance, the incident doesn’t have to involve your property or your vehicle for your umbrella insurance to cover it. You’re also covered worldwide, with the exception of homes and cars you own under other countries’ laws.

Do you know how to select the proper liability limits to protect your assets? Most likely, the answer is "No" but we here at Budget Insurance & Tucson Insurance Solutions make it simple and easy to calculate the level of protection that's right for you.

All too many times we as consumers get caught up in the game of saving a few dollars on our insurance. Yes, we agree that paying too much is never a good thing but let's stop for a moment and think about the REAL SAVINGS insurance has to offer.

Your auto, home and other insurance policies include liability coverage. This coverage is in place to protect your assets but not having the proper coverage can be costly.

The liability limits you select protects your assets but it doesn't mean you're off the hook. If a claim or lawsuit exceeds the coverage amount you carry, YOU are responsible for anything above that amount. This means that your assets become the next "coverage" you have in place. Not only the equity in your home, savings and investments are at risk but so are your future wages. Did you know that the national average wage garnishment is 33%? Yes, that means that a judgement against you can not only dip into your current assets but also your future earnings through wage garnishment.

We realize the idea of this all is a little frightening but set your worry aside. We can help you select the right coverage to give you the protection and peace of mind you need.

Figuring out the level of coverage you need is easy. Let's get started:

By using the coverage calculator below, you can quickly and easily calculate the liability coverage that best suits your individual needs.

Coverage Calculator

The post Umbrella Insurance – How Does It Work? appeared first on Budget Insurance - Tucson, AZ.

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FMM Permit for Rocky Point / Puerto Penasco

May 9, 2025

To update you on what is happening at the Lukeville/Sonoyta border crossing for our insureds traveling to Rocky Point: Depending on the officer, Mexican authorities (Guardia Nacional) are enforcing the FMM and passport requirements, but not consistently. Some travelers have reported crossing as usual without passports, and officers simply waived them through. Others have reported obtaining FMMs at the border, with all travelers carrying passports. If travelers are transparent and declare any alcohol they’re bringing into Mexico, they are being charged a 114% tax. However, some people reported having alcohol but were waived through by officers and did not pay the tax. It appears enforcement depends on the officer, and tourists are currently taking their chances. It comes down to each traveler’s level of confidence and risk tolerance, as enforcement is not yet consistent. Our company’s recommendation is to follow the law: Process the FMM online Print the form Stop at the INM (Immigration) office at the border to get it stamped Reminder: The FMM tourist permit is only for foreign citizens, not for individuals with dual citizenship. Here is the link to obtain the FMM online (in case travelers ask where to process it before crossing the border): https://www.inm.gob.mx/fmme/publico/en/solicitud.html The INM Immigration Office is located in the Aduana building. For your reference, the Gastrak/Sanborn’s location in Lukeville and the Aduana building (just to the left after crossing the border) are highlighted. Additional reminders for this border crossing: All vehicles must have a current, original, valid registration OR the original title/notarized copy. Digital copies or images are not accepted. If the vehicle is not owned by the driver (e.g., a company vehicle, borrowed from family or friends), a notarized letter of permission from the owner is required to take the vehicle into Mexico. Border Hours: U.S. and Mexican authorities have agreed that the Lukeville–Sonoyta border crossing to Rocky Point (Puerto Peñasco) is open daily from 6 a.m. to 8 p.m., with extended hours on Fridays (6 a.m. to 10 p.m.) from March 7 to October 10, 2025.

A person is holding an umbrella over a pile of money.

How Much Liability Coverage Do I Need?

By Julie Akin • March 13, 2025

Do you know how to select the proper liability limits to protect your assets? Most likely, the answer is "No" but we here at Budget Insurance & Tucson Insurance Solutions make it simple and easy to calculate the level of protection that's right for you. All too many times we as consumers get caught up […] The post How Much Liability Coverage Do I Need? appeared first on Budget Insurance - Tucson, AZ.

A yellow tow truck with a green car on top of it.

Driving with Confidence: Unveiling the Benefits of Auto Mechanical Breakdown Protection

By Julie Akin • August 18, 2023

Safeguarding Your Ride: Exploring Auto Mechanical Breakdown Protection Your car is more than just a means of transportation; it's a reliable companion that takes you on journeys both near and far. However, like all mechanical things, vehicles are prone to wear and tear, and the possibility of breakdowns is ever-present. This is where auto mechanical […] The post Driving with Confidence: Unveiling the Benefits of Auto Mechanical Breakdown Protection appeared first on Budget Insurance - Tucson, AZ.