When most think of umbrella insurance policies, they assume it applies to a corporation. Umbrella insurance is, after all, liability insurance, and we do usually think of liability in terms of a company. But an individual or dependent can also cause property damages or bodily harm that can mean certain lawsuits.

Additionally, your umbrella insurance provides extra coverage on top of your primary policies. This means you already need to have standard homeowners, auto, or boat insurance policies. But this makes sense and works in your favor. A 2013 analysis reports that 78% of umbrella insurance claims and 87% of losses come from auto accidents. In the case of damages and it calls for more than your policy covers, your umbrella insurance steps in to pay what is leftover. Besides that, it covers claims that your primary policies do not include, such as liability claims such as slander and libel.

A personal umbrella insurance policy is not for everyone. Not everyone has the assets to be concerned. Farmers Insurance suggests anyone with a net worth of $1 million or more see umbrella insurance as worth it. This is the minimum amount typically covered in an umbrella policy. But you should calculate how much coverage you need by how much assets you have under your name.

Risks to Look Out For

The idea that anyone with enough property as a target on their back for lawsuits. The more you have, the more assets you can be sued. So, activities where people can accuse you, even falsely, can benefit from coverage of this sort.

For example, if you are a kids’ sports coach, a scout leader, or volunteer, you are at a higher risk. Positions like serving on a school board or of a non-profit carry their own dangers. Participating in sports like hunting, surfing, and skiing, where the possibility of harming someone else is high, you have another cause for caution. And a couple that many might not think of are regularly posting reviews online and landlords.

Left to Right: Jeffrey Fogleman, Kristy Thompson, and Roland Cardner

Another risk can be the type of property you own. Ultimately, a lawsuit can drain you, whether you lose or win. So, if you own a pool with a diving board or slide, trampoline, dog, treehouse, motorcycle, personal umbrella insurance is a good idea. Many of these are classified as “attractive nuisances.” This term means you can be held accountable for someone wandering onto your property and getting hurt with these without your permission or knowledge.

Your Texas Independent Insurance Agents

In conclusion, if you have assets to protect, then an extra bump in your insurance coverage is a sensible idea. The agents at Texas Insurance are here to make sure you get the right amount of coverage for the amount of property you have and your risk level. As independent agents, we work for you, not the insurance carrier. So, call us at (713) 224-5500 or email us through info@texinsagency.com to learn more about personal umbrella insurance and get a policy of your own.