Personal Liability

If you are a homeowner in Grand Prairie, Arlington, Mansfield, Irving and Dallas, chances are that you already have some liability coverage. Most homeowners policies and auto policies include a certain amount of personal liability coverage. If someone is injured at your home, or if you ruin someone’s property with your car, the insurance company pays the claims, up to the amount that you are covered for.

Personal liability coverage helps you protect your assets, since the insurance company pays out the claim, and you don’t have to dip into your savings, or into your other assets. However, the personal liability coverage that comes with your more common insurance coverage isn’t always enough.

Maybe try an Umbrella Policy! One way to augment your personal liability coverage is to purchase an umbrella policy . Umbrella insurance protects you in larger amounts than what is usually offered with your other policies, but the premium increase isn’t as bad.

You can usually buy a popular umbrella coverage amount for about $150 a year, and an increase of $50 for each additional $1 million. Many consumers find that boosting the deductible on auto or home insurance can offset the cost of umbrella insurance.

If you have factors that increase your chances of damaging property, or injuring others, it can be worth it to get umbrella insurance — especially if you have a high net worth. Someone who knows you have more assets might be more willing to sue you for $2 million after a slip and fall at your home. Umbrella coverage kicks in after your regular insurance is tapped out.

So, if your homeowners policy has $750,000 in liability coverage, and you have $3 million in umbrella insurance, if you are sued for $2 million, your homeowners policy will tapped first. Once the $750,000 has been paid out, the remaining $1.25 million will be paid from your umbrella policy.

We initially started with a $1m umbrella policy but recently increased that to $2m of total coverage.   I also have an umbrella policy for my business, too.