Knowing when to purchase umbrella insurance can be a tricky decision. All-Tex Insurance is here to assist you with guidelines for when you should consider adding an umbrella policy to your insurance portfolio in Granbury, TX.
What Is Umbrella Insurance?
Umbrella insurance is an extra layer of protection that provides liability coverage above and beyond other policies, such as homeowners or auto insurance. It covers personal injury and property damage claims, including medical bills, lost wages, pain and suffering, legal fees, and more. In the event of a lawsuit, an umbrella policy will kick in after the limits of your primary policy have been reached. This type of coverage is excellent for those with high net worth because it prevents them from paying out-of-pocket costs in the event of a disastrous lawsuit.
How Much Net Worth Should You Have Before Getting an Umbrella Policy?
The answer to this question depends on several factors, including your current assets, liabilities, income level, and lifestyle. Generally speaking, it may be wise to consider investing in an umbrella policy if you have enough assets to make you a target for litigation or engage in risky activities (such as owning a boat). Also, keep in mind that if you are sued for over $1 million, then an umbrella policy could help protect your assets from being seized by creditors or claimants during litigation.
Contact Us Today
Having adequate insurance in Granbury, TX is essential for protecting yourself financially against potential risks down the road. Especially if your net worth is considerable enough, it makes you more vulnerable to lawsuits or other costly legal proceedings. If you still have questions, contact All-Tex Insurance today. We can help you find the right solution for where you are now in your financial life.