Umbrella policies are one type of insurance provided by The Policy Source in Austin, TX. Generally, an umbrella policy is liability coverage that is used when your underlying insurance policy’s liability limit is reached. It is designed to protect you from catastrophic claims that would be financially devastating. You can purchase umbrella insurance for your home or vehicle.
What Does Umbrella Insurance Cover?
Umbrella insurance typically covers bodily and personal injury, property damage, and landlord liability. If you are in an accident and there’s a large amount of property damage or injury, you may be liable for the damage. If your auto policy has a property damage limit of $250,000 and the damage is $500,000, without an umbrella policy you would have to pay the other $250,000.
If you have assets, including a home, they could be seized to help cover the payment. Your wages could be garnished.
Who Needs Umbrella Insurance?
If your assets exceed the liability limits on your home and auto policies, umbrella insurance is a good financial decision. You are more likely to be sued for large amounts if you have the financial resources to make it beneficial to the other party. However, even if you don’t have high-value assets you may want to consider an umbrella policy.
There are many incidents that could result in a judgment against you, and in many cases, the damages are left up to the judge’s discretion. Umbrella insurance is very affordable, so it’s a good idea for everyone to carry an umbrella policy.
If you are wondering if you could benefit from the extra protection of an umbrella policy, contact The Policy Source in Austin, TX today. We will help you make an informed decision regarding an umbrella policy based on your unique situation.