With rising claim amounts and increasing legal settlements, now is the time to rethink your coverage and make sure you’re not leaving yourself exposed.
How much coverage can I get with a personal umbrella policy?
Personal umbrella policies typically start at $1 million in coverage and can go up to $10 million or more, depending on your needs. This extra layer of protection kicks in when your home, auto, or rental property insurance limits are exceeded—which happens more often than people realize.
- Major auto accidents: If you cause an accident with severe injuries or property damage, medical bills and lawsuits can quickly surpass your auto liability limits.
- Home-related injuries: A personal umbrella policy can cover legal fees and settlements beyond your homeowners insurance if someone gets hurt on your property.
- Rental property liabilities: If a tenant or guest gets injured on your rental property and sues you, umbrella insurance can help cover excess legal costs.
If you have multiple assets or higher-than-average liability exposure, carrying an umbrella policy can mean the difference between financial security and a significant setback.
Risk management and personal umbrella insurance go hand-in-hand.
Being proactive about risk is just as important as having insurance. A well-rounded risk management strategy includes:
Evaluating potential liability risks – Do you have enough coverage for worst-case scenarios?
Understanding policy limits – Are your auto and homeowners policies enough, or do you need extra protection?
Adding umbrella insurance for peace of mind – A single lawsuit could exceed your primary insurance limits, and an umbrella policy helps protect your assets.
Texas residents, in particular, should be mindful of rising litigation trends and the increased costs of medical care and property damage. Where legal claims and accident-related expenses continue to climb, having that extra layer of coverage isn’t a bad idea.
What doesn’t a personal umbrella policy cover?
While personal umbrella insurance offers broad protection, it’s essential to understand its limitations. Most policies do not cover:
- Intentional damage or harm – If you deliberately cause damage or injury, your policy won’t cover the costs.
- Criminal acts – Any legal claims tied to illegal activities won’t be protected.
- Business-related liability – If you own a business, you’ll need commercial coverage, not personal umbrella insurance.
- High-risk activities – Operating aircraft, providing professional services, or engaging in extreme sports may not be covered unless specifically added to your policy.
Is it hard to renew a personal umbrella policy?
Not at all! Renewing your policy is usually seamless. Most insurers will notify you before renewal, allowing you to review your current coverage, make adjustments based on life changes, and ensure your policy limits still meet your needs.
If you’ve had any major financial or lifestyle changes—such as purchasing a second home, renting out a property, or acquiring valuable assets—it’s a good idea to increase your coverage accordingly.
Real Situations Where a Personal Umbrella Policy Matters
Auto Accidents – If you cause a crash that results in multiple injuries and property damage, your standard auto policy may not cover everything. An umbrella policy adds an extra layer of financial protection.
Homeownership Risks – Someone slips and falls at your home, sues for medical expenses and lost wages, and wins a six-figure settlement. Your homeowners insurance may not be enough to cover it all.
Hosting Gatherings & Social Host Liability – If you serve alcohol at a gathering and a guest later causes an accident, you could be held liable. Umbrella insurance helps cover excess costs.
Recreational Activities & Watercraft – Whether boating, ATV riding, or jet skiing, accidents happen—and lawsuits often follow.
Rental Property Liabilities – If you own a rental property, and a tenant or guest is injured and takes legal action, umbrella insurance can protect your rental income and assets.
Defamation & Personal Injury Lawsuits – With social media playing a more significant role in daily life, claims related to libel, slander, and invasion of privacy are rising. A personal umbrella policy can help cover legal defense costs if you're swept up in such a claim.
Protect Your Future—Review Your Coverage Today
Your financial security and peace of mind are worth protecting. Personal umbrella insurance isn’t just for the wealthy—it’s for anyone who wants to safeguard their assets and avoid major financial risks. Even better, it’s far more affordable than many people think. $1 million of coverage generally starts at around $200 per year.
A quick policy review with a Leavitt Group Texas Select agent can help you identify potential coverage gaps and ensure you’re fully protected. Contact us today to review your current insurance and explore whether adding a personal umbrella policy is right for you.
Have questions? Contact:
