June 2, 2025

What Is Not Covered By An Umbrella Policy?

Mark Callender and Josh Bowlin lead CB Trial’s Houston practice with a singular mission: protect neighbors facing sudden financial risk after a serious accident or insurance dispute. We have tried high-stakes liability cases in Harris County for decades, earning reputations as practical, compassionate advocates.

Together, we understand how a single lawsuit can jeopardize a family’s savings, home, and future and how the right insurance strategy can change the outcome.

Our Houston umbrella policy attorneys guide clients through policy reviews, claim negotiations, and, when necessary, courtroom battles. Call (713) 300-8700 now for a free, same-day review with Houston umbrella insurance attorneys Mark Callender and Josh Bowlin. We offer free consultations, straight talk, and rapid response because evidence on I-10 or Loop 610 disappears fast.

What Is an Umbrella Insurance Policy and Why Might You Need It?

An umbrella policy is excess liability insurance that activates when the limits on your auto, homeowners, or boat policy run out. It pays for the other person’s injuries, property damage, and even your legal defense after a covered claim.

Houston drivers face some of the busiest, most dangerous roads in Texas. TxDOT recorded 368 fatal crashes and more than 30,000 injury crashes in Harris County last year. A chain-reaction wreck on I-45 or a severe dog-bite incident in Bellaire can create damages far above standard policy limits. Without umbrella coverage, personal assets, from paychecks to investment accounts, sit exposed.

Umbrella insurance also extends to claims like libel, slander, or false arrest that typical home or auto policies ignore. For families with teenage drivers, backyard pools, rental properties, or sizable savings, those extra layers of protection can be the difference between peace of mind and financial ruin.

What Do Umbrella Policies Usually Cover, and What Don’t They Cover?

Umbrella policies generally cover:

• Bodily injuries you cause to others (e.g., multi-vehicle crash on US-59).
• Property damage you cause (e.g., knocking down a historic fence in Montrose).
• Personal liability claims such as libel, slander, or false arrest.
• Legal defense costs even if a lawsuit is groundless.

What is not covered by an umbrella policy?

• Your own injuries and medical bills.
• Damage to your own property (your car repairs, home roof, business inventory).
• Business-related claims unless you buy a commercial umbrella—injuries to a customer at your side hustle’s pop-up shop are excluded.
• Intentional or criminal acts such as assault, racing on I-10, or driving while intoxicated.
• Professional services—malpractice or bad advice require separate errors-and-omissions or professional liability coverage.
• Certain vehicles or watercraft (aircraft, jet skis, ATVs) unless specifically endorsed.
• Contract disputes, war, or nuclear events.

These exclusions appear, often in fine print, because insurers calculate premium prices on predictable, accidental risks, not deliberate acts or specialized hazards. Knowing them up front prevents costly surprises.

Why Do These Exclusions Matter in Your Claim?

Exclusions determine who pays when disaster strikes. If a texting driver rear-ends you on IH-610, her umbrella policy may settle your seven-figure spinal cord claim, unless she was racing, an intentional act excluded from coverage. In that case, you might chase her personal assets instead of an insurance check.

For Houston families, exclusions particularly matter because verdicts here routinely eclipse $1 million. Medical inflation, lifetime care, and punitive damages push figures higher. When damages fall into an exclusion gap, defendants risk garnished wages, liens on property, or bankruptcy. Plaintiffs risk collecting nothing.

Understanding these carve-outs early lets our Houston umbrella insurance lawyers craft better strategies: stacking other policies, negotiating endorsements, or suing additional liable parties to bridge funding gaps.

How Can CB Trial Assist When Your Umbrella Claim Is Denied?

A denial letter often cites an exclusion, vague policy language, or alleged late notice. Our attorneys move fast to:

1. Audit every policy: auto, home, umbrella, to pinpoint promised protections.
2. Demand the insurer’s claim file and identify adjuster mistakes or bad-faith tactics.
3. Gather evidence (accident reconstruction, medical bills, expert reports) that fits within covered grounds.
4. Negotiate or litigate to enforce the contract or pursue statutory bad-faith penalties under Texas Insurance Code Chapter 541.

We recently forced a national carrier to reverse its denial and pay a $750,000 settlement after citing a questionable “business-activity” exclusion.

Insurance companies bank on policyholders giving up. We don’t. Houston insurance attorneys Mark Callender and Josh Bowlin stand between you and unfair practices, fighting for every dollar the contract owes.

How Much Umbrella Coverage Do You Need in Houston?

Coverage should equal your net worth plus future earnings. Typical starting points are $1 million, but many Houston professionals choose $2 million to $5 million because:

• Median home values in the Energy Corridor top $450,000.
• Jury verdicts for catastrophic injuries often exceed $3 million.
• Medical inflation averages 6–7 percent annually, rapidly inflating future care costs.

Consider higher limits if you:

1. Drive I-45, one of America’s deadliest highways, daily.
2. Own rental properties in Midtown or the Heights.
3. Employ household staff or host large gatherings.
4. Have teenage drivers or recreational boats.

A brief review with our Houston liability attorneys can match coverage to risk without overpaying.

Why Choose CB Trial for Your Insurance and Accident Case?

CB Trial blends courtroom muscle with neighbor-level compassion. We answer calls 24/7, visit hospitals from Memorial Hermann to Ben Taub, and front all litigation costs until we win or settle. Our attorneys maintain a network of accident reconstructionists, medical experts, and financial planners to maximize claim value.

Houston insurance claim lawyers at CB Trial understand both policy drafting and jury psychology; we’ve defended insurers and now leverage that insight for families. When coverage gaps threaten your future, we step in, shoulder the legal stress, and press for full, fair compensation.

Call (713) 300-8700 or visit our Galleria-area office today for a free, same-day case review.