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While you may have an automobile insurance policy and a homeowners insurance policy on your Austin TX home, if you have any assets to protect, you also need an umbrella insurance policy to provide extra insurance for those policies. Claims can arise from a variety of situations and there are liability issues that can affect everyone. Here are the top five reasons The Policy Source has found for why you need umbrella insurance.
- Homeowners Insurance. If your homeowners insurance policy covers liability for injury up to $300,000 per incident and your neighbor with three kids under the age of 10 drowns in your pool, their estate may sue you. If they sue for $1,000,000, your homeowners insurance will pay $300,000 and you will be responsible for the remaining $700,000.
- Auto Insurance Claims. If your teen loses control of their vehicle and ends up damaging a building, there can be considerable losses to that business. If they file a claim for $250,000 and your policy’s limit is $100,000 for property damage, you’ll be left fending for yourself.
- Boat Insurance. Let’s say you lend your friend the use of your boat and you have a liability limit of $300,000. If they take it out on the lake with a case of beer and some buddies, and they plow into another boat, killing someone, their survivors may sue for $1,000,000. Your general boat insurance will pay the $300,000, and if you have an umbrella policy in place, it will pay the remaining $700,000. If not, your home and other assets will be at risk if you cannot pay.
- All-Terrain Vehicles. If your grandchild takes your ATV out for a spin and crashes, suffering critical injuries, your ATV insurance will cover some of the cost of medical care up to your policy’s limit. If they sustain $600,000 in medical costs and your insurance has a $100,000 limit, you’ll be responsible for the remainder unless you have umbrella insurance.
- Personal Injury. If Someone in your family repeats a rumor about one of your neighbors, the neighbor can sue you for defamation. Because your homeowners policy doesn’t cover slander or defamation of character, if they sue for $500,000 and win, you’ll be forced to pay the total amount. If you have umbrella insurance, you will only have to pay the deductible; your policy will cover the rest.
If you live in the Austin TX area, contact The Policy Source today to find out how umbrella insurance coverage will protect your family’s assets.