Insurance Umbrella Policy
Why Personal Liability Umbrella Coverage?
Personal Liability Umbrella coverage is essential in protecting your assets should you find yourself liable for claims in excess of regular homeowners, auto, or watercraft policy coverage. 
It is an extremely affordable way to get significant extra liability coverage. Many people ask, “Do I really need extra liability coverage?”.  The short answer is yes. 
What you really must consider is, are you at risk of being sued.  In a world where anyone can bring suit against you for any reason, personal liability umbrella coverage provides much needed security in an unpredictable world. 

Real Life Situations
Most people’s knee-jerk reaction is, “that would never happen to me.”  Liability Umbrella coverage exists for the “but what if it did” moments.
Below are some real-life examples of when Personal Liability Umbrella coverage has protected an insured’s assets. If these moments didn’t exist, then neither would Personal Liability Umbrella coverage.

Scenario 1
An insured couple hosted a small gathering of other couples at their lake home. While the couples dined outdoors on the deck overlooking the water, the deck supports gave way and the deck, which was approximately 8ft above the ground, collapsed.  The host couple was sued by each of the other couples for medical expenses and “pain and suffering”.

Scenario 2
While driving on a major interstate highway during heavy traffic, an insured driver experienced a blown-out tire, causing a multiple vehicle accident. The insured’s underlying auto insurance policy does not have enough property damage coverage to repair all the vehicles involved, nor is the liability coverage on the auto policy enough to cover the medical bills for all the injured parties.

Scenario 3
An insured’s teen son is involved in an altercation at football practice in which another child sustains a broken bone. The parents of the other child sued the insured for damages, which included medical expenses as well as “pain and suffering” caused by their son’s inability to complete the football season during his senior year of high school, and the loss of possible scholarships due to the child’s inability to play.

What's at Risk Without Adequate Coverage?
So, what happens if you are found liable in a situation, and you don’t have a Personal Liability Insurance policy?  Many people believe that, in Texas, there are laws that protect them from hardship caused by a situation like this.  In reality, the only protection offered under state law, prevents a person from losing their primary residence and provides that they must retain one vehicle for the purpose of transportation to and from employment.  However, a lien can be placed on these assets so that any money received from the sale of these assets would go to satisfy payment of a settlement. 

Any savings or investment accounts can be liquidated for the payment of settlement as well as any future gains, i.e. income tax refunds, lottery winnings, and income such as bonuses that are above and beyond regular income.  With all that is at stake in a world where so many things are out of our immediate control, it just makes sense to have the added coverage, especially when it can be purchased for as little as a few hundred dollars per year in some cases. 

If you would like more information about Personal Liability Umbrella coverage or if you would like to request a complimentary, no obligation quote for coverage,
please contact Energy Capital Insurance at 832-604-2160 or click the button at the end of this article.
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