Should you supplement your Houston homeowners policy with umbrella insurance?

You know how important homeowners insurance is. It provides you the financial help you’ll need to rebuild should a disaster damage or destroy your home. It will pay out the funds you’ll need to repair or replace items inside your home that are damaged or destroyed by these disasters.

Your homeowners insurance policy will even help you cover the costs of replacing any valuable possessions that are stolen should a thief break into your home.

But your homeowners insurance also provides what is known as general liability protection. This type of financial protection is equally important. If a visitor or guest to your home is injured on your property, this type of protection will help cover the costs of any medical treatments these injured parties receive. It will also help pay the costs if you must protect yourself from a lawsuit.

This protection is important. Say a neighbor drowns or is seriously injured in your backyard swimming pool. The injured party or that person’s relatives might sue you for significant damages. But what if your standard homeowners insurance policy doesn’t provide enough coverage? What if you are being sued for an amount that is over the limits provided by your homeowners insurance policy?

This is where an umbrella policy can help.

At its most basic, an umbrella insurance policy provides additional liability coverage above the coverage already provided by your homeowners insurance in Houston.

Here’s a good example: If someone visiting your house suffers a catastrophic injury after falling down your stairs because of a loose banister, you could face a lawsuit of $1 million or more, depending on how serious the visitor’s injuries are. But what if your homeowners insurance only provides liability coverage of up to $400,000? You could lose your most valuable assets, including your residence, if your insurance policy doesn’t provide enough coverage.

Umbrella coverage is a safety net. In umbrella policy kicks in if a claim filed against you exhausts all of the liability coverage provided by your standard homeowners insurance policy. The money that you still owe is paid by the insurance company from which you purchased your umbrella coverage.

Fortunately, umbrella insurance isn’t an overly expensive form of protection. The Insurance Information Institute estimates that it costs about $150 to $300 every year for an umbrella insurance policy that provides $1 million in coverage.

If you want to boost your homeowners insurance in Houston by even more, you can expect to pay about $75 in additional premiums each year for $1 million more in protection, according to numbers released from the institute.

This is not too high of a price to pay for the peace of mind that umbrella coverage can provide. Your home is your most valuable asset. If a tragedy should occur on your property, you could lose this asset easily.

Your best move? Review your existing homeowners insurance policy with your Houston insurance agent. Make sure that your policy’s existing liability coverage provides enough protection. If it doesn’t? It might be time to invest in the extra coverage provided by an umbrella insurance policy.

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