Umbrella Insurance in Texas

These days, it seems that no one is safe from lawsuits. Anyone can file a lawsuit for any reason, and if you or a family member cause injury to another person, or are injured on your property, they can sue you to pay for the injured party’s damages. To protect your personal assets in the case of such a lawsuit, you need the protection provided by extra liability coverage personal umbrella insurance. A personal umbrella policy supplements the liability coverage your other insurance policies provides.

Do You Need Extra Personal Liability Coverage?

If you own a home in McKinney TX, your homeowner’s insurance policy’s liability coverage protects you and your family if someone is injured while on your property, or if you or a family member injures someone on other people’s property. However, your homeowner’s liability policy is subject to policy limitations that may not provide adequate coverage in the event of a lawsuit. This possibility holds true for your auto insurance as well. Most auto insurance policies have liability limits that would not provide sufficient coverage if you are sued.

Personal umbrella insurance isn’t just for wealthy people. At The Gray Group Insurance Brokerage, we recommend that our clients evaluate their risks carefully and fully understand what they may lose if they are sued. A personal umbrella policy is particularly important if you own more than one home, have rental property, or have a young driver in the home.

How Does an Umbrella Policy Work?

An umbrella policy provides extra protection for your assets that exceed your basic homeowners or auto insurance liability limits.

  • If you are facing liability issues your homeowners or auto insurance does not cover at all, your umbrella insurance can provide coverage above and beyond those limitations.
  • If you have reach the maximum liability limit of your homeowners or auto insurance policy, an umbrella policy offers excess liability protection to bridge the gap.

Texas Homestead Laws

Texas has unique homestead laws that prohibit a creditor from seizing your primary residence. The homestead laws provide most homeowners with significant protection in the event of a lawsuit, preventing your from being taken from you to pay a debt. However, the homestead exemption may not apply to a homeowner whose lots exceed a certain acreage. Contact our office for to help determine if the Texas’ homestead laws apply to your Texas home, and how that may affect your personal umbrella insurance needs.

To assess your personal liability insurance needs, based on your assets and risks, and find out how an umbrella policy can provide extended coverage for your new or existing homeowners or auto insurance policy, call The Gray Group Insurance Brokerage or stop by our office today.