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Texas Umbrella Insurance
Life happens fast, and sometimes it throws more at you than your basic insurance can handle. That’s where Texas umbrella insurance can help. This extra layer of coverage provides financial protection when you exceed the limits of your auto, homeowners, or renters insurance limits. Whether you’re facing a lawsuit for an accident on your property or a large claim after a car accident, umbrella insurance ensures you’re not stuck with the bill.
What Does Umbrella Insurance Cover in Texas?
Umbrella insurance is designed to provide an extra layer of liability protection for you and members of your household, such as your spouse and children. If you face a major claim or lawsuit, and your home or auto insurance reaches its limit, umbrella insurance steps in to cover the additional costs. Here’s what a typical umbrella insurance policy covers:
- Bodily injury claims: If someone gets hurt on your property or in an accident involving your car, umbrella insurance helps cover medical expenses that go beyond your regular policy.
- Property damage claims: Whether it’s an accident that causes damage to someone else’s car or property, this coverage kicks in when your primary insurance reaches its limit.
- Legal defense costs: Facing a lawsuit can be costly. Umbrella insurance helps cover your legal fees, so you’re not footing the entire bill if you’re taken to court.
- Lawsuits for defamation, libel, or slander: If you’re ever sued for making statements that harm someone’s reputation, umbrella insurance can help cover those legal and settlement costs.
What Does Umbrella Insurance Not Cover?
While umbrella insurance provides broad protection, it does have exclusions. Typically, it won’t cover:
- Your own injuries or damage: Umbrella insurance doesn’t cover your personal injuries or damage to your own property.
- Intentional acts: If you intentionally cause harm or damage, umbrella insurance won’t step in to cover those claims.
- Business-related liability: Claims related to your business activities aren’t covered by personal umbrella insurance. For those, you’ll need commercial liability coverage.
- Contract disputes: If you’re sued over a breach of contract, umbrella insurance won’t apply.
- Flood or earthquake damage: Natural disasters like floods or earthquakes typically aren’t covered. Separate policies are needed for those specific risks.
Who Should Consider Umbrella Insurance in Texas?
Umbrella insurance is a smart choice for anyone looking to protect their assets and secure peace of mind. It’s especially beneficial for:
- Homeowners: If you own a home in Texas, particularly a high-value property, this coverage can help you avoid financial fallout from lawsuits that exceed your homeowners insurance limits. For example, if a guest is injured on your property and their medical bills and legal claims exceed the coverage provided by your homeowners policy, an umbrella policy will step in to cover the remaining costs.
- People with Substantial Assets: If you’ve accumulated substantial savings, investments, or own multiple properties, umbrella insurance is essential. In the event of a large liability claim, such as a car accident or legal case involving property damage, this policy ensures that your hard-earned assets are protected from being used to pay out settlements or judgments.
- Frequent Drivers: The more time you spend on the road, the higher the likelihood of being involved in an accident. If you’re at fault in a serious accident and the damages go beyond what your auto insurance can cover, umbrella insurance kicks in to handle the extra costs.
- You Rent Out Property or Host Guests Often: If you own rental properties or regularly have guests over, umbrella insurance can save you from the financial strain of a big lawsuit. Let’s say a tenant or guest gets injured on your property and decides to sue for damages. If the claim goes beyond your homeowners or landlord insurance limits, umbrella coverage picks up where those policies leave off to help protect your income and assets.
- You Have Pets or Risky Items: Pets, especially larger breeds, can sometimes cause accidental injuries or property damage. If your dog bites someone, or even if your trampoline or pool leads to an accident, the resulting liability claims can be costly. Umbrella insurance offers coverage when your regular home insurance hits its limit.
How to Get Umbrella Insurance in Texas
Mercury Insurance is committed to providing you with affordable umbrella insurance that’s tailored to your life and assets. Getting started is easy. Contact one of our local agents today to discuss your needs and get a quote.
How Umbrella Insurance Works with Existing Policies
Umbrella insurance doesn’t replace your auto or home insurance — it supplements it. Here’s how it works:
- Primary insurance payout: Your existing auto or home insurance will cover damages up to its policy limit.
- Umbrella insurance kicks in: If the claim exceeds that limit, your umbrella insurance policy takes over, covering the remaining costs up to your umbrella limit.
For example, if you’re at fault in a car accident and responsible for $1.5 million in damages, but your auto policy covers only $500,000, your umbrella policy would step in to cover the remaining $1 million.
How Much Does Umbrella Insurance Cost in Texas?
Generally, you can expect to pay between $150 to $400 per year for $1 million in coverage. However, the exact cost of your umbrella insurance will depend on a few factors, like the value of your assets and your risk profile.
To find out how much umbrella insurance costs based on your unique circumstances, contact a Texas insurance agent today for a personalized quote.
How Much Umbrella Insurance Do You Need in Texas?
The amount of umbrella insurance you need depends on your personal risk factors. As a rule of thumb, you should have enough coverage to protect your total assets. For instance, if you own property and vehicles and have savings and investments worth $1 million, you might want at least $1 million in umbrella insurance coverage.
Mercury Insurance offers flexible policy options, with coverage limits typically starting at $1 million and going up from there.
Frequently Asked Questions
What is the minimum coverage required for umbrella insurance in Texas?
There’s no legal minimum requirement for umbrella insurance in Texas, but most policies start at $1 million in coverage. Mercury Insurance agents can help you determine how much protection you need based on your assets and risk exposure.
Does umbrella insurance cover rental properties in Texas?
Yes, umbrella insurance can cover rental properties, protecting you against liability claims made by tenants or visitors to your rental home.
How does umbrella insurance interact with flood or storm damage?
Umbrella insurance doesn’t cover flood or storm damage. For flood protection, you’ll need separate flood insurance, while homeowners insurance typically covers storm damage.
Is umbrella insurance tax-deductible in Texas?
Generally, personal umbrella insurance is not tax-deductible. However, if you use an umbrella policy for a business-related reason, part of your premium may be tax-deductible. Consult with a tax professional for details.
Is an umbrella policy worth it?
If you have assets to protect or are at risk of liability claims, an umbrella policy is a smart investment to consider.
Mercury Insurance Coverage in Texas
Mercury offers several insurance products to residents, including: