People today know the importance of buying enough personal insurance protection. Auto, health and even homeowners insurance protect individuals and families from the potentially ruinous consequences of an accident or other covered event. But what about coverage for things that cannot be bought or replaced? For instance, your future financial security, college education for your children, or your good name and reputation. This is where a personal Texas umbrella insurance policy comes in.
What is an Umbrella Policy?
In today’s Litigious society, an umbrella policy is an important part of your insurance portfolio as it provides an extra layer of liability coverage above the limits of your underlying policies.
Umbrella insurance also protects you from lawsuits stemming from car accidents, slip-and-falls, libel, slander, and much more. Because it kicks in when your primary coverage is exhausted, an umbrella policy can help you avoid tapping into your savings to pay for a lawsuit. This is why some consider umbrella insurance to be an asset protection policy.
What is Covered under Umbrella Insurance in Texas?
An umbrella policy provides coverage to you and members of your immediate family who live with you for most events resulting in liability claims. This includes events that occur both on and off your property.
The main types of events covered by an umbrella policy are:
If you or a family member are found liable for injuring someone else, your umbrella policy will provide coverage for medical bills, lost wages, and other damages. This kind of liability could occur in situations such as:
- You are responsible for an accident that has injured a third party, and they will sue you.
- Your dog bites a neighbor.
- Your child’s friend is injured while playing on your property.
- A guest in your home trips and falls down the stairs.
If you are involved in an automobile accident, an umbrella policy will provide coverage if the other driver sues you for damages to their vehicle. This is in addition to any coverage you may have under your auto insurance policy. Your policy could also cover damage caused to someone else’s property via your liability arising from the accident, for example, a stone wall you damaged when your car left the road.
If you own rental property, there are several potential liability risks you face, such as
- A tenant is tripping and falling down the stairs.
- Guests in your rental property get injured due to an uneven sidewalk or other dangerous conditions.
If the injury caused is serious, you may be sued for big money. An umbrella policy will help protect you in these situations by providing coverage for medical bills, legal fees, and any damages that may be awarded.
Other potential sources of liability that your umbrella policy may cover include:
As mentioned above, your umbrella coverage can also cover you against non-property damage and no-personal-injury events. These might include things:
- Slander is making a false oral statement about another person, damaging their reputation.
- Libel is the same as slander, but incorrect statements are made in writing.
- If you falsely detain or arrest another person.
- You inadvertently infringe on someone’s copyright.
The above listed are a few examples of events that could lead to a lawsuit and for which an umbrella policy would provide coverage. However, it is important to keep in mind that every policy is different, and there may be some exclusions, so it is always best to read your policy documents carefully or speak to your agent to make sure you understand what is covered by your umbrella insurance in McAllen.
What is Not Covered Under Texas Umbrella Insurance?
While umbrella policies provide broad coverage, some things are not covered. These might include:
- Compensation is awarded as punishment for malicious or illegal acts that exceed the actual damages caused.
- Business liability claim (this requires a separate policy– business insurance policy)
Who Should Have an Umbrella Policy?
Many believe Umbrella policies are just for the wealthy, but this is not always the case. If you have assets that could be at risk in a liability lawsuit, you should consider an umbrella policy. This might include:
- People who rent their homes
- People with items in their homes that are deemed hazardous such as a swimming pool, trampoline, or firearm.
- People with pets could pose a liability risk, such as a dog with a history of biting people.
- People participate in high-risk activities such as skiing, rock climbing, or motorcycling.
- People with teenage drivers on their policy
- People with boats or RVs
- Business owners
- People who work in high-risk professions where they could cause injury to others
- People with a significant net worth
Umbrella insurance policy in Laredo is relatively inexpensive, so even if you do not think you need one now, it is always best to err on the side of caution and have the protection in place should you ever need it.
How Much Does Umbrella Insurance Cost?
Personal umbrella insurance is considered to have the best values of all liability insurance since you can purchase a relatively low amount of coverage for a relatively low cost. The average price of a personal umbrella policy is between $150 to $500 per year for $1 million in liability coverage and an additional $75 to $100 per year for each extra million in coverage you purchase.
Business umbrellas can be slightly more expensive since business liability risks are generally higher than personal risks.
It is, however, worth noting that the cost of an umbrella policy is not the only cost to consider when buying this type of insurance. You may also require to carry a minimum amount of liability insurance on your other policies, such as your auto or home insurance. If your current limits are insufficient, you will need to raise them, which will most likely result in a higher premium.
Do I Save Money with an Umbrella Policy?
Many people wonder if they can save money by carrying an umbrella policy. Technically you do not save money since there is a cost for the premiums. And there could be extra costs if you raise the liability limits on your other policies.
However, when you look at the big picture, umbrella Insurance can protect your assets and save you a lot of money if you are sued. The cost of an umbrella policy is a drop in the bucket compared to the hundred dollars you pay from your pocket if you lose a lawsuit. You may even have to sell your assets or liquidate your retirement to pay for the damages.
An umbrella policy can give you peace of mind and protection when needed. It is one of the best insurance values, and we believe everyone should have one in place.
Want to Buy Texas Umbrella Insurance?
If you are ready to get started with your Texas umbrella insurance policy, TX Insurance Quotes can help.
Simply request a free umbrella insurance quote in Victoria, Odessa, Harlingen, Brownsville, Beaumont, El Paso, and other major Texas cities. Our licensed insurance agents will compare rates from top-rated insurers to get you the best deal. We can also help you find the right coverage for your needs and budget.