One of the joys of owning a luxury watercraft is spending leisure time with family and friends on local waterways. You’ve purchased watercraft insurance to protect your expensive investment, but you may wonder if it’s enough. Adding umbrella insurance can provide additional protection if an accident occurs. Southwest Insurance Center, serving Austin, TX, can help you select an appropriate umbrella insurance policy.

Addressing Injuries Occurring on Watercraft

Watercraft insurance policies usually include a liability provision to cover incidents on board. However, like auto insurance policies, they come with payout limits. For example, if your watercraft policy has a $200,000 limit on injuries, but a guest on your boat sues you for $1 million to cover lost wages, pain and suffering, and more, you would be responsible for the rest of the award. An umbrella insurance policy would cover the additional award, eliminating potential stress after an incident. The policy covers not only incidents that you have caused but also incidents that your dependent children may be involved in.

Umbrella insurance will kick in after payments from your primary watercraft policy, with umbrella liability amounts ranging from $1 million to $4 million. However, it’s important to remember that umbrella insurance is different from health insurance. You will remain responsible for any medical costs your health insurance doesn’t cover.

What Umbrella Insurance Doesn’t Cover

Umbrella policies contain exclusions that negate payouts. These include the following:

• Racing and similar high-risk activities
• Operating your luxury boat while intoxicated
• Acting with criminal intent
• Intentionally injuring someone or causing property damage

Finding the right umbrella insurance policy to meet the needs of your luxury boating lifestyle in Austin, TX, is simple. Contact the agents at Southwest Insurance Center to get started on a policy that will allow you to enjoy your boat to the fullest.