A personal liability lawsuit can take you by surprise—and upend your life.
Although personal liability cases are on the rise across the United States, only some people understand what they are, how they work, and how to protect themselves against them.
An umbrella personal insurance policy offers the best protection against unpleasant legal circumstances.
The right umbrella policy in Texas can shield you from many personal liability incidents, including car accidents, dog bites, lost wages, accidental injuries, and more.
Read on to learn more about umbrella policies in Texas—and how Second Western Insurance can help you make the best choice for you and your loved ones.
What Is an Umbrella Policy?
Life is full of unexpected events.
An umbrella policy is a particular type of insurance policy that covers many personal liabilities, including homeownership, automobile protection, and more.
Umbrella policies often kick in when your existing insurance runs out, and they can help prevent you from losing your assets and savings in the event of a lawsuit.
Most umbrella insurance policies also cover your family members and other household members. They may also protect against injury to others, incidents involving your possessions, and more.
Umbrella insurance policies usually cost less than other types of insurance, so they offer excellent value for your money.
Do I Need a Personal Umbrella Insurance Policy?
Most people stand to benefit from having a personal umbrella insurance policy.
Because they cover a wide range of issues, they can protect you from unexpected events and prevent you from incurring expensive lawsuits.
You likely need an umbrella insurance policy in Texas if you:
- Own a home
- Own a pool, recreational court, or other potentially dangerous amenities
- Spend lots of time driving or riding a motorcycle
- Own aggressive dogs, exotic pets, or a dangerous item (firearm, weapon, etc.)
- Have significant assets
- Work in a risky business
- Are a content creator, writer, or journalist
- May have your wages garnished
- Have household staff
- Manage a trust or estate
- Have a high public profile
- Participate in a hobby that could potentially hurt someone else
Ultimately, the list of people who could benefit from an umbrella insurance policy is extended. To that end, it makes sense for most people to get one.
What Do Personal Umbrella Policies Cover?
Umbrella policies can cover a wide range of incidents and events.
They exist to provide funds above and beyond what your ordinary insurance can provide. For example, if you get into an auto accident and are held accountable for the damages, you may run out of funds on your auto insurance – which is when your umbrella policy in Texas kicks in.
Umbrella insurance often covers typical issues, including property damage, injuries to others, personal liability lawsuits, libel, and slander suits.
They also may include more unusual events like wrongful eviction, invasion of privacy, and false arrest or detention.
Read on to learn more about how an umbrella policy could support you in the event of an injury or accident.
You Cause an Injury or Accident
A personal injury lawsuit can become quite expensive.
Suppose you are involved in an auto accident, work-related accident, or any other incident involving an injury done to someone else. In that case, you can use your umbrella policy to cover damages.
Your Pet Hurts Someone
Dog bite lawsuits are on the rise in Texas.
Most people don’t think to get insurance policies for their dogs – but with the rising number of successful claims in Texas, it might be wise.
An umbrella policy can protect you if your dog bites or harms someone.
Your Child Harms Someone Else
Children are often unpredictable.
If your child gets into a fight, throws a rock at a car, or harms a pet, you will be held liable for any damages – and such claims can seek high compensation.
To that end, it’s best to be prepared with an umbrella policy.
Someone Is Hurt in Your Home
If someone gets hurt in your house – whether in the kitchen, pool, or driveway – they could seek retribution.
An umbrella policy is necessary for such circumstances, particularly if you own a pool, as they are frequent locales for accidents.
You Are Wrongfully Arrested or Detained
The Innocence Project maintains that 3,000 and 9,000 people are currently wrongfully imprisoned.
Although it may feel like it could never happen to you, it occurs relatively frequently.
An umbrella policy can help cover your legal fees if you are wrongfully arrested, detained, or imprisoned.
Accessing a deep pool of funds can make the difference between freedom and wrongful incarceration.
You Are Accused of Libel or Slander
In the age of social media, it’s increasingly common to incur lawsuits for incidents of libel or slander.
If you post on social media or work as a content creator, you likely need an umbrella insurance policy to protect yourself from First Amendment lawsuits.
You Are Sued for Any Reason
Ultimately, there are dozens of ways an umbrella insurance policy can be helpful to you.
An umbrella policy’s versatility is why many Texans choose to get them.
They are affordable, flexible, and adaptive to various uses, making them ideal for most people.
What Is Not Covered by an Umbrella Policy?
Although umbrella policies cover most incidents, additional cases might be excluded.
Intentional Harms
A personal umbrella policy will not cover your expenses if you intentionally harm someone or destroy property.
Unfortunately, they only apply in instances of unintentional harm.
Business-Related Damages
If you own a business, you likely already have an insurance policy to protect your assets.
If you don’t, you should consider having insurance in Texas.
An umbrella policy, however, is unlikely to cover business-related damages, since you typically need an industry-specific approach.
Malpractice Lawsuits
You may occasionally face malpractice lawsuits if you are a doctor, lawyer, or professional.
Malpractice claims can be detrimental to your business, finances, and livelihood. As a result, it’s a good idea to have an insurance policy for malpractice suits. However, an umbrella policy will not cover such incidents.
Workers’ Compensation Claims
If you own a business and have employees, there’s a chance of an accident happening. In that case, the medical and/or wages lost will be paid by the Worker’s Compensation insurance as long as there is an agreement that the injury was work related. An umbrella policy won’t cover this type of event.
How Do Umbrella Policies Work?
Umbrella insurance policies kick in when traditional approaches fail.
For example, you can draw on your auto insurance if you crash your car into a building and someone is hurt.
But your auto insurance likely has a $300,000 policy limit, and if the damages exceed this amount, you’ll have to draw on personal finances.
Thankfully, umbrella insurance policies can cover the remaining amount for the victim’s compensation, so you don’t have to pay it out of your pocket.
How Much Personal Umbrella Insurance Do I Need?
Umbrella insurance policies are typically cheaper than most other insurance types.
You won’t need to spend more than a couple hundred dollars on your policy unless you have pricey assets or a dangerous job or career.
Additional factors that can include the cost of your policy are:
- Your credit history
- Driving record
- Where you live
- Risk factors like your job, pets, or home ownership status
Coverage is typically sold at varying increments from $1 million to $10 million.
When considering how much umbrella coverage to get, consider the following:
- Your assets (the total value of your current assets, including your home, car, and finances)
- Your potential future purchases (additional homes, inheritance, paychecks or business revenue, etc.)
- The coverage provided by your existing policies
How Second Western Can Help You Get a Texas Umbrella Policy
At Second Western, we work tirelessly to bring the best umbrella insurance policies to Texans everywhere.
Nick Schrader, the owner of Second Western, offers extensive experience in the Texan insurance market and unmatched customer service to ensure every client receives the most affordable rates and comprehensive coverage possible
We can help provide the policy you need to rest easy knowing that your loved ones and valuables are in good hands.
To inquire about your umbrella coverage policy, contact us on our website or call us anytime.
Get your free quote today and protect yourself and your family from unexpected financial strain.
Frequently Asked Questions
Consider the following most frequently asked questions before deciding whether to invest in an umbrella policy in Texas.
Will I need umbrella insurance?
Most people stand to benefit from getting umbrella insurance since it covers such a wide array of potential issues.
Consider umbrella insurance if you own or rent a home, have pets or children, work in a sensitive field, or create content. There are many other reasons to obtain umbrella insurance, so consider calling us to determine if this option suits you.
Is umbrella insurance expensive?
Umbrella insurance is cheaper than most other insurance policy types.
Since other insurance policies already protect you, the umbrella policy doesn’t require as profound an investment.
Our umbrella insurance policies are intentionally affordable – so you can protect yourself without breaking the bank.
Will it cover flood damage?
Most umbrella insurance policies do not cover flood damage.
However, flood coverage is typically good for renters and homeowners alike.
Do renters need personal umbrella insurance?
Homeowner issues are only one fraction of what umbrella insurance policies cover.
As a result, such policies aren’t just for homeowners – they also apply to renters. Even renting your home, consider getting an umbrella insurance policy to cover other damages.
Is umbrella insurance tax deductible?
Unfortunately, umbrella insurance is not tax deductible in Texas at this time.
Wrapping Up
An umbrella insurance policy is an excellent protective mechanism for most people.
Consider getting a comprehensive and affordable umbrella policy from Texas General Insurance.
Contact us today for a free quote and more information about your umbrella policy. With umbrella insurance, you can sleep peacefully, knowing your assets and finances are adequately protected.