What is an Umbrella Insurance Policy

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. 

Is it Time to Get Flood Insurance?

Flood insurance makes sense for homeowners in the greater Austin, TX area and the team at The Policy Source is here to help you find the policy that is most appropriate for your needs. If you are uncertain why you may need to have a separate flood insurance policy, keep reading! It is always unfortunate to hear about a neighbor who has flood damage, and they don’t realize that their primary homeowner policy doesn’t provide the protection they need until it’s too late. Don’t let this happen to you!

Find Out More About Flood Insurance Today

Flood insurance is required for many residents in our areas, but it is also helpful for those who live outside of the major flood zones. Insurance policy coverage often comes down to the cause of the damage when the company is determining if there is a covered event. There are a number of different water damage causes that are covered by typical homeowner’s policies, but in general, flood damage is not covered. If you want the peace of mind that comes with knowing that your family home is protected from damage caused by flooding and floodwaters, it’s time to look into a separate flood insurance policy. Don’t wait until it’s too late to discover that you don’t have the insurance you need! Our team is here to review your protection needs and help you find an appropriate insurance policy.

If you are in the greater Austin, TX area and want to learn more about the available flood insurance options, we are here to help! The team at The Policy Source has the information you need to make an appropriate decision about the right flood insurance policy for your needs. Call or stop by today to learn more!

Sharing Your Condo With Another Family? What You Need To Know

Sharing Your Condo With Another Family? What You Need To Know

Thinking about sharing your vacation condo with another family? This can be a great way to save money and make sure you’re getting the most out of your condo. If you’re sharing your condo with another family, check out these tips to ensure that the process goes smoothly for both parties. 

– Create a schedule. It can be tempting to leave things as an informal agreement, but this can lead to problems when both of you show up at the condo at the same time. There are plenty of apps and virtual calendar options you can use to keep everyone updated on the schedule. 

– Consider making it official. After you come up with a payment agreement for how you’ll share the costs of the condo, create an official agreement. It can’t hurt to have a lawyer take a look at what you’ve drawn up to alert you to any areas that need attention. After you have a payment agreement, you may want to talk to your lender about getting the other family on the mortgage as well, so you’re not the only one held responsible if they fail to keep up their end of the agreement. 

– Check your insurance policy. Make sure you have a solid insurance policy on your condo that will cover you no matter who is staying there if/ when an issue arises that necessitates the use of insurance. 

Call The Policy Source, Serving Austin, TX

If you’re looking to update your condo insurance policy, or need to purchase a new policy, The Policy Source, serving Austin, TX, is here to help. Stop in today to talk about your condo insurance needs with one of our agents.

When will I need umbrella insurance?

Protecting yourself, family, business, and property using insurance is quite critical in Austin, TX. Everyone wants to ensure that they get enough coverage in every aspect of life. One of the most valuable policies to consider when buying insurance is umbrella insurance. 

Umbrella insurance is a generalized type of liability policy that offers additional coverage on top of your auto, home or boat insurance. When you purchase this type of coverage at The Policy Source, our insurance specialists will ensure that they get you only the policies that best fit your needs. 

Loss or damage that exceeds the liability coverage

When you are involved in an accident, two unfortunate things are likely to happen; the damage costs may get very high beyond your insurance limits, or you may get sued. In this case, if you are at fault and are found guilty of that unfortunate accident, there is a good possibility that the legal fees will exhaust your primary insurance policies. However, if you have umbrella insurance, it will take care of the rest of the legal fees.

When specific liability is not covered

The standard policies are quite general and may not cover every part of your needs. For instance, slander or libel is always left out in the primary policies, but they are covered under umbrella insurance.

When the primary policy’s limit is reached

Every time you are involved in an incident whereby the basic policy isn’t adequate to take care of the damage costs or the losses incurred, umbrella insurance will kick in and clear the rest.

Umbrella insurance is an excellent way to cover you in case of emergencies. Let The Policy Source help you get this extra coverage today. Visit us at our local offices in Austin, TX, and we will help you with the options available.

Why You Need Renters Insurance

If you are renting in Austin, TX, it’s important to note that your landlord’s policy won’t cover certain things and you will need renters insurance to cover your belongings and your own liability. There are a few reasons why renters insurance is important.

It Will Cover Personal Property: Even if you don’t think you own much, you may be surprised to find out how much your belongings add up. A standard renters policy will protect against a long list of perils. Some of these include explosion, damage by aircraft, fire, smoke, theft, vandalism, or windstorm. Losses from earthquakes and floods won’t be covered under a standard policy. This will also include your belongings when you are traveling. Check with an agent at The Policy Source to see what is and isn’t covered in your policy. If you have expensive items in your home, such as artwork, you may need to get additional coverage. 

Your Landlord May Require It: The state doesn’t require renters insurance, but your landlord may require it. A number of landlords are requiring insurance and won’t rent to you until they see proof, because with insurance, some of the responsibility can be shifted away from them.

It Gives Liability Coverage: Liability coverage will protect you if someone is injured in your home or you accidentally injure someone else. It will cover any payments, as well as legal expenses. While many policies will cover $100,000 of coverage, you can also pay for more coverage.

It Can Cover Additional Living Expenses: If you aren’t able to live in your rented home due to a covered peril, then your policy may cover additional living expenses. This can cover the cost of living somewhere else, food, and more.

Contact The Policy Source, serving Austin, TX, to get a quote on renters insurance. 

What Does Rv Insurance Cover?

If you own an RV in Austin, TX, it’s important to have an RV insurance policy. However, what it covers will depend on you. A basic policy will cover liability, ensuring that you are protected if someone gets injured by your RV or if your RV damages someone’s property. What it covers beyond that is up to you.

At The Policy Source, we’re here to make sure that your RV insurance policy covers all that you need and want.

Just like an auto policy, you can add to an RV policy to include more. This will allow you to be protected against more scenarios, such as a break-in, vandalism, or something outside of your control damaging your RV. Having more coverage is optional, though it makes sense to make sure that you are protecting your investment.

Consider how much you spent on your RV. Without sufficient coverage, you could end up spending a lot of your own money to repair or replace your RV. You don’t want to have to go through that. With the right insurance policy, you can file a claim. You would pay the deductible. After that, the insurance company would pay up to the limits that you have.

As for what those limits are, you will need to meet state requirements for liability. You can, then, increase those limits for more financial protection. By doing so, you limit the likelihood of having to pay out of pocket considerably for an accident that happens with your RV.

The Policy Source is here to help you get your RV covered in Austin, TX. Rather than feeling overwhelmed by the choices, let one of our independent insurance agents guide you through the process. Then, you can enjoy peace of mind knowing that you have sufficient insurance on your RV.


Does Your Motorcycle Insurance Cover Other Riders?

As an avid motorcyclist in the greater Austin, TX area, there are times when you want to bring a fellow passenger along for the ride. You might even want to let another rider take a spin on your motorcycle. But before you do either, you’ll want to make sure that passenger or rider benefits from your motorcycle insurance coverage. It all depends on the type of coverage you’ve purchased with the help of the independent agents at The Policy Source.

If you only have the minimum liability coverage needed to legally ride, it may not be enough to protect other riders or passengers. Most liability-only coverages are designed to protect only the named policyholder in the event of an accident. Unless your passenger or rider has their own insurance coverage, they’ll have little to no coverage to rely on if they’re seriously hurt.

That changes once you add comprehensive and collision coverage to your motorcycle insurance policy. Having full motorcycle insurance coverage affords you and your passengers more protection. In the event, another rider damages your bike, your policy will still cover the damage.

Not all insurance plans are the same, however, so it’s a good idea to ask your independent agent for more details. Don’t forget that you have the option of adding other riders to your insurance policy, especially if they’re frequent riders. By being specifically named under your policy, other riders will enjoy the same protections against liability, property damage, and other unforeseen circumstances.

Anything can happen when you’re out on the highways and byways of Austin, TX. If you need a new motorcycle insurance policy or want to add new riders to your current policy, don’t hesitate to call The Policy Source today.

I Use My Boat Commercially As Well As Recreationally – Is There a Difference in Insurance

There are different points of vulnerability if you use your boat for both recreational as well as commercial uses. It is a keen idea to be able to make money doing something you love. There are many people who make their living on the water engaged in various enterprises. 

Firstly it is important to understand fully where your vulnerability lies.  A commercial policy may be in order as well as your boating insurance policy. There is a vast difference in what you will need depending upon the type of enterprise you are engaged in from chartering your boat for tours through commercial fishing enterprises. Insurances become quite specific in how it can cover you and others as well as your property liability.

While the short answer is yes – there is a difference in insurance, the long answer involves a conversation with a professional. Speak with one of our agents today to make certain you have every facet of insurance that you need for both work and play .  

The Policy Source Specializes in Boat Insurance

No matter what your individual needs are in terms of your boating use – commercial or recreational. When next on land stop by our The Policy Source office is in Cedar Park TX in  Austin, TX. We look forward to assisting you with finding the most comprehensive and sound boat insurance policy for your needs.

We Go Beyond Boating – So Do You – Our Focus Is Protection

Your life includes boating but you have other insurance needs as well. The Policy Source can help you with all of your other insurance needs:

  • auto
  • renters
  • home
  • recreational vehicle
  • life
  • condo
  • motorcycle
  • flood 
  • umbrella

Does it make sense to add an umbrella insurance to your personal liability policy?

If you have a home policy as well as personal liability coverage, you may wonder if an umbrella policy is a good fit for your insurance portfolio. Clients in the greater Austin, TX area with a large net worth are not the only people who can benefit from adding an umbrella policy to their current coverage. The team at The Policy Source is here to answer all of your questions and help you determine if this type of coverage makes sense for you and your family.

Situations where a personal umbrella policy makes sense 

Every policy, whether homeowners or auto or anything in between, includes coverage limits. This is the absolute maximum that your insurance provider will pay out. Clients who have a high level of assets, or are at risk of liability exposure, often find that an umbrella policy can provide the peace of mind that they need. Consider a situation where someone is injured or suffers another type of mishap on your property and brings judgment against you. Such a situation can cause a lot of emotional and financial stress on you and your family. Such an instance would likely exhaust the maximum payout of a typical homeowner policy and you would be responsible for any amount not covered by your insurance. With a personal umbrella policy, you will have additional coverage that can cover the excess amount that is part of a legal case. Don’t leave your family’s assets unprotected!i

Interested in learning more about how an umbrella insurance policy can help protect you and your family? Contact the team at The Policy Source today and find out more about this effective instrument to provide coverage in the greater Austin, TX metropolitan area.

How can I tell if I’m living in a flood zone?

No standard property insurance policy will cover damage caused by a flood. This includes flooding from any source, including a river, pond, ocean or even outside drains. 

That means that if you want your home protected if there is a flood, you will need to purchase a separate flood insurance policy. The people living in a flood zone are in the most danger, although about one out of five flood claims come from areas outside of the highest risk zones. At The Policy Source, we can help residents in Austin, TX assess their own personal risks based on their location and its history.

Searching FEMA.gov for Information about Flood Zones

The government makes it easy to check whether your home is in a high-risk flood area. 

The map is easy to read and tells whether your home is in a minimal risk area of one of the higher risk zones. According to the site, just being in a high-risk zone means you are more likely to experience a flood than fire in the next 30 years.

Other Effects of Living in a Flood Zone

The value of your property can be seriously affected even if your home is never damaged by flooding, just by nature of being in a high-risk location. Flood insurance in a very high-risk area could also be expensive. Even if you don’t want it, you will be forced to purchase flood insurance if you are in a high-risk area and you have a government-financed loan.

If you are in Austin, TX and need help finding out your risk, or if you want to discuss an insurance policy, feel free to call The Policy Source today.