Who Should Consider Buying Umbrella Insurance?

Accidents and lawsuits can sometimes result in expenses that surpass the limits of your regular insurance policies. In these situations, umbrella insurance can step in to cover what your main policies cannot.

Texas is known for its strong legal system, and large liability claims are not uncommon. The combined costs of medical care, legal fees and settlements can quickly become overwhelming. If your regular insurance falls short, you could end up paying the difference yourself, putting your savings and property at risk.

Who Should Get This Policy?

Your standard insurance pays only up to a certain amount if you’re responsible for injury or property damage. While umbrella insurance isn’t required by law, it can be beneficial for:

• Homeowners: If someone is injured on your property, you could face significant liability claims.
• Drivers: Serious auto accidents can result in costly lawsuits that exceed your auto policy’s limits.
• Parents: If your children are involved in incidents at school, sports or online, you may be held liable for their actions.
• Dog owners: Pet-related injuries can result in costly claims.
• Landlords: Owning rental property increases your exposure to liability risks.
• High-net-worth individuals: If you have substantial assets, umbrella insurance can help you manage greater financial risks and potential claims.

What Does It Cover?

Umbrella insurance may help with medical expenses if someone is injured in a car accident or a fall on your property, cover costs from accidentally damaging someone else’s property and assist with legal defense fees and court costs if you face a lawsuit over a covered claim. Additionally, it may offer broader liability coverage for situations not included in your standard home, auto, or renters policies. For example, this policy can also address claims involving libel, slander or false arrest, as well as liability that may arise from injuries or property damage at a rental property you own.

How Can I Get Started With Umbrella Insurance?

You can start by reviewing your current home, auto, or renters insurance policies to understand your liability limits. You may want to assess your assets and potential risks to determine if additional coverage can help address unexpected expenses. This review can reveal gaps in your coverage that an umbrella insurance policy may help fill.

We’re Here to Help

Our team at Auto Pilot Insurance can help you find a policy that aligns with your budget and goals by understanding your risks. Contact us today to discuss your options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.