Common Umbrella Insurance Exclusions

Umbrella insurance protects you when the underlying liability coverage runs out. While umbrella insurance can save the day during rainy days, sometimes, it can fall short. Learning about umbrella insurance exclusions from The Policy Source in Austin, TX can minimize frustrations during the claim process.

Own damage or injury

Remember, umbrella insurance is liability coverage — it covers other people but not you or your loved ones. For instance, if you cause a significant accident with your vehicle, umbrella insurance will cover the losses to other people after the car liability insurance has been exhausted. However, you will have to seek compensation from your car insurance for your injuries or damage to your car.

Criminal or intentional acts

Your umbrella insurance won’t cover losses you cause from criminal or intentional acts. For instance, if you use your car as a weapon in road rage, your insurer will void your claim.

Losses are supposed to be covered by the underlying coverage

Umbrella insurance isn’t a stand-alone policy — it rides on existing coverage, such as your home, boat, or car insurance. Umbrella insurance only kicks in when the underlying coverage has been exhausted. This means that umbrella insurance won’t cover damage or injuries that are supposed to be covered by the underlying coverage.

Other exclusions

Your umbrella insurance won’t cover risks arising from events not included in the policy. For instance, if your umbrella insurance policy doesn’t include a certain dog breed, it won’t cover the resulting losses if your dog causes harm to a third party. Similarly, umbrella insurance won’t help you if you cause a severe accident with an uncovered vehicle.

Umbrella insurance in Austin, TX

Want to boost your boat, home, or vehicle insurance with umbrella insurance? Want to learn more about umbrella insurance? Please contact The Policy Source for all your umbrella insurance solutions.

How Much Flood Insurance Do I Need?

Did you know your standard home insurance doesn’t cover flood damage? Most homeowners don’t know this fact until it’s too late. However, The Policy Source in Austin, TX can help you learn more about the need for flood insurance before a flood strikes.

While investing in flood insurance is great, the other crucial point to observe is purchasing adequate coverage. If you don’t purchase sufficient coverage, you will incur considerable out-of-pocket expenses, negating the reason for investing in flood insurance in the first place. So, how much flood insurance should I purchase? It’s never a straightforward answer.

Comply with the requirements

Flood insurance isn’t mandatory in Texas, but your mortgage lender may require you to purchase flood insurance if you live in a flood zone. Always read your loan agreement to establish your lender’s requirements. However, you will have to realize that your lender requires you to buy flood insurance equivalent to the outstanding loan amount. Remember, this amount is just a minimum and might be insufficient when faced with severe flood damage.

How much insurance should I get for my dwelling?

As a rule of thumb, always assume the worst-case scenario when insuring your dwelling. Assume that a flood caused significant damage to your entire building. Would your current flood insurance cover the damage? If not, you should talk to your insurer to purchase a sufficient amount.

Always consider the replacement cost when insuring your home. This value ensures you don’t incur out-of-pocket expenses if the worst happens.

How much personal assets coverage should I purchase?

Like dwelling coverage, ensure your flood insurance can replace your entire assets in the worst-case scenario. However, to ensure everything in your home is covered, always maintain an updated inventory list with your insurer.

Still not sure how much flood insurance you should purchase? Don’t worry. We are here to help you. Please email or call The Policy Source in Austin, TX for personalized advice.

Four Key Areas Covered by Condo Insurance

If you have a condominium in Austin, TX, it’s an excellent investment for life. Your condo can act as a home while giving you the convenience of living near strategic locations. If you own a condo, have you thought about condo insurance? Yes, you may contribute to the condo owners association (COA), but you still need condo insurance to give you all-rounded protection.

If you purchase condo insurance from The Policy Source, it covers you in the areas below.

Liability protection

If others accuse you or your loved ones of causing bodily injury or property damage, condo insurance covers the damage. Since liability claims can be expensive, condo insurance protects your assets and savings when you face significant lawsuits.

Loss of use coverage

When a peril in your policy makes your condo unlivable, condo insurance pays for the additional living expenses until your dwelling becomes habitable. Simply said, condo insurance covers costs when a covered loss temporarily relocates you.

Personal assets coverage

Like home insurance, condo insurance covers your furniture, clothing, electronics, and other personal assets when lost or damaged by covered risks. You don’t have to start from scratch when perils strike.

Loss assessment coverage

You may contribute to your master policy, but sometimes the fund in the COA may not be enough to cover damage or liabilities incurred in shared spaces such as the swimming pool. When this happens, condo owners must top up the difference from their pockets. However, this doesn’t have to be the case if you have condo insurance. This policy pays for the loss assessment costs, preventing you from incurring out-of-pocket expenses.

Does condo insurance appeal to you? If you are in Austin, TX, please contact The Policy Source for a competitive quote.

How Does Liability Insurance Work?

If you are a business owner, it’s essential to have liability insurance. This type of insurance protects your business if someone is injured or their property is damaged due to your business activities. It can be a lifesaver in the event of an accident or lawsuit. This blog post will discuss how liability insurance works and answer some common questions about it.

How Does Liability Insurance Work?

Liability insurance is a type of insurance that protects businesses from claims arising from injuries or damage to property. It can help cover the cost of legal fees, settlements, and judgments against the company. Moreover, it can help pay for the medical expenses of someone injured due to the business’s activities.

Factors to Consider When Choosing Liability Insurance

When you purchase liability insurance in Austin, TX, you’ll need to choose a policy limit from a professional company such as The Policy Source. This is the maximum amount the insurance company will pay out in case of a claim.

It’s important to choose a policy limit that is high enough to protect your business assets but not so high that you’re paying for coverage you don’t need. Another important consideration when purchasing liability insurance is the type of coverage you need.

Types of Liability Insurance

There are two main types of liability insurance: general liability and product liability. General liability insurance covers claims arising from your business activities, such as slip-and-fall accidents or damaged property. Product liability insurance covers claims arising from defects in the products you sell. You’ll need to decide which coverage is right for your business.

How Liability Insurance Works: A Guide

Liability insurance is an essential type of insurance for businesses. It can help protect your business from claims arising from accidents or damage to property.

For any questions about liability insurance, Austin, TX businesses can contact The Policy Source for more information. We’re here to help you find the right insurance coverage for your business. Give us a call today.

Does Umbrella Insurance Cover Me If I’m Sued?

Umbrella policies cover you if you are ever sued, and the amount of coverage exceeds the amount that the lawsuit demands. Umbrella insurance usually comes into play if a severe accident occurs and regular insurance is not enough to cover all damages. 

Because umbrella policies have a more comprehensive range of coverage, they usually come with higher premiums than standard insurance policies. Still, they can be worth the cost if you ever need to use them. For questions in Austin, TX, immediately call The Policy Source. 

What to Know About Umbrella Insurance 

Umbrella insurance is meant to cover you if you are ever liable for something and don’t have enough insurance to cover the cost. Still, your liability insurance only covers up to $250,000; your umbrella policy covers you up to the $1 million limits. 

It’s good to purchase an umbrella policy if you have many assets to protect or a liability that exceeds your primary insurance limits. For example, if you have a million-dollar home, a million-dollar car, a million-dollar business, expensive artwork, etc., you may consider an umbrella policy. 

Umbrella policies can provide up to $1 million in additional coverage, giving you the financial resources to fight a suit if one is filed. Umbrella insurance protects you if you are sued and the amount of coverage you have exceeds the amount that the plaintiff claims. Umbrella insurance can help cover your legal costs if you are found liable in a lawsuit and the cost of your damages up to the limit specified in your policy. 

What to Know About Umbrella Insurance 

Umbrella insurance protects you if you are sued and the amount of coverage you have exceeds the amount that the plaintiff claims. Umbrella policies can help cover your legal costs if you are found liable in a lawsuit and the cost of your damages up to the limit specified in your policy. For advice, tire no more. Contact The Policy Source serving in Austin, TX.

Does everyone in Austin need renters insurance?

Moving to the Austin, TX area is a dream for many people. If you are going to move to this part of the state, it could be a good idea to rent your home instead of buying it. Real estate in Austin has been on a dramatic rise. This is why renting is the ideal option for some. If you want to rent a property, you still need to get the right insurance. Various benefits come when you receive renters insurance, and there are multiple reasons it could be a necessity. 

Insurance is an Obligation Under a Lease

A critical reason everyone will want to have a renters insurance plan is that it will be an obligation under the lease. As you evaluate your housing options, you will find that carrying renters insurance is a requirement. In most cases, you will even have to provide evidence that you have coverage before you move into your new home. 

Benefit from Protections

You will also need to have renters insurance to benefit from the protections it provides. If you choose to rent a home and take out a renters insurance plan, you will receive protection for your personal assets. Further, you will get personal liability coverage that will offer support if you are named liable in any type of accident that occurs in your home. 

As you are looking for your next home in the Austin, TX area, you will likely spend time assessing your renter’s insurance needs. Once you are ready to start looking for a new plan, it can be a great idea to contact the team with The Policy Source. The professionals with The Policy Source understand the value of this coverage and can help you build a policy that will meet your needs and ensure you are in full insurance compliance. 

Do You Need Year-Round RV Insurance Coverage?

At The Policy Source, we usually get this question from our Austin, TX clients: “Do I need RV insurance all year round, yet I use my RV seasonally?”  It’s a resounding yes. You must insure your RV all year through, even if your RV is stored in a secured facility. If you have been thinking about canceling your RV insurance during the off-season, you need to think again. You must maintain RV insurance all year for the reasons below:

It may be required

If a financial institution has financed your RV, they will require you to maintain your RV insurance all year through. Like you, the lender has vested interests in the RV and would like to be well-covered should calamities strike. If a loan secures your RV insurance, you must maintain RV insurance until you pay off the outstanding loan.

Risks don’t have an off-season.

While on the road, one of the most prominent risks is crashing with other motorists. However, now that your RV is parked in your garage, you are free from risks, right? You are mistaken. Yes, you might not be on the road, but risks can still strike. Risks like fire, vandalism, theft, and natural disasters can strike anytime, and that’s why you need RV insurance all through.

For peace of mind

You will never be at ease if you know your RV isn’t insured. Every time you might be thinking of the financial consequences should something happen to your RV. While life is full of things to worry about, the safety of your RV shouldn’t make the cut. Maintain your RV insurance all year through, and you don’t have to think about this and that happening to your investment.

Want to invest in RV insurance in Austin, TX? Talk to The Policy Source for a quote and to answer your questions.

5 Common motorcycle claims in Austin, TX

Motorcycles offer freedom on the open road. But they also bring risk.

Accidents can happen when you least expect them. Although motorcycle insurance can better protect your interests, prevention and awareness is the best way to avoid serious injury.

The Policy Source wants to keep you safe on the roadways. Serving Austin, TX, the agency shares five common motorcycle claims.

Excessive speed

Motorcycles can hit high speeds quickly. Unfortunately, reckless driving is the primary cause of motorcycle-related deaths. Obey all posted speed limit signs. But, most importantly, reduce unnecessary risk by wearing proper safety gear, like helmets and reflective clothing.

Objects on roadway

Excessive speed makes seeing and avoiding obstacles difficult. If unnoticed, unexpected debris, like rocks or garbage, can lead to serious damage. The Policy Source reminds its clients to stay alert and vigilant at all times.

Distracted Driving

Awareness is always key. That’s why driving becomes more dangerous when you are distracted by cell phones, radios, and other electronics. But this isn’t just a tip for motorcycle riders. It applies to all motorists. Often, car drivers won’t spot motorcycles until it’s too late. 

Poor Weather Conditions

Even diligence can’t control the weather. Fog, high winds, and heavy rain can pop out of nowhere and reduce visibility. During these events, even the smallest distraction or error can be costly.

Improper Lane Switching 

At intersections, this causes the most motorcycle insurance claims. Improper left turns are the main culprit. Another issue is lane splitting. This happens when a motorcycle rider attempts to avoid traffic by driving between two lanes.

Contact an accident serving Austin, TX

All accidents are scary, but motorcycle collisions can be especially dangerous. For this reason, motorcycle insurance is critical. Serving Austin, TX, The Policy Source can make sure you’re covered. Call and schedule an appointment today.

Types of Boat Insurance

If you are a boat owner, the Policy Source serving Austin, TX would like you to know about the types of boat insurance plans available to you.

Types of Physical Damage Policies

If your boat is damaged or destroyed, there are three main types of boat insurance policies available to choose from that will protect you financially from this.

Replacement Cost Insurance Policy

This policy pays to repair or replace your boat.

Actual Cash Value Policy

This type of policy pays to repair or replace your boat subject to depreciation. That means it will pay equal to the boat’s current value on the current market.

Agreed Amount Value Policy

This type of policy pays to repair or replace your boat at the set value specified in your boat insurance policy.

When reviewing your boat insurance options, check whether your boat is covered when it is not on the water and is being stored or transported.

Other Types of Boat Insurance

While you would insure a boat the same way you would insure your house or car, there are additional considerations.

Liability Insurance

Liability insurance is always a big one. Ensure that you are adequately covered if someone is injured due to an accident on the water. Your liability insurance should include a section for property damage if you hit another boat or the dock and cause damage to someone’s property.

Insurance for specific perils

Perils like windstorms, hail, and hurricanes are not usually included in your standard boat insurance policy and may require an add-on purchase.

Like contents coverage for a homeowners policy, check whether you need additional insurance to cover the boat’s contents on an all-risk basis.

Contact us!

Speak to the professional people at the Policy Source serving Austin, TX, about your boat insurance requirements today!

What is Umbrella Insurance?

When searching for insurance, you may quickly become overwhelmed. It doesn’t even matter if you are searching for insurance for your home, automobile, or your business, it can quickly become overwhelming. You have to learn different terms so that you can find the right plan for you.

One term that may come up is umbrella insurance. So, what is it? 

Umbrella insurance is not a stand-alone policy. In fact, it is added to your current policy, whether you add it to your home, automobile, or business policy. 

You may get umbrella insurance to cover expenses that go over your limit when it comes to your home or automobile insurance. Your home and automobile insurance may have a limit to how much they will pay. Once they hit that mark, they won’t give you any more money. If your medical bills go over that limit, you are going to have to pay that out of pocket, unless you have umbrella insurance. It will kick in and start paying at that point.

You may also want to consider umbrella insurance if you have expensive jewelry or art. Your homeowner’s policy will only go so far when it comes to your possessions. If you have some things that are quite costly, such as jewelry, you may want an umbrella policy to help cover these items. 

An umbrella policy isn’t a stand-alone policy. Instead, it kicks in when your other insurance hits their limits, making sure that you aren’t paying too much out of pocket. It also protects your possessions if you own something expensive. 

If you think that you want to add umbrella insurance to your current plan (or find a better fit for you), don’t hesitate to contact us today at The Policy Source in Austin, TX.