Liability insurance in Texas covers you when someone else sues you for property damage or bodily injury you allegedly caused. Understanding what you have — and what you don't — can make the difference between financial security and financial ruin.
Types of Liability Insurance in Texas
Personal liability coverage comes in several forms: auto liability (required by Texas law for drivers), homeowners liability (included in most HO policies), umbrella liability policies (providing excess coverage above auto and homeowners limits), and commercial general liability for business owners.
Texas Minimum Auto Liability Requirements
Texas requires minimum liability coverage of $30,000 per person / $60,000 per occurrence for bodily injury, and $25,000 for property damage (30/60/25). These minimums are dangerously low for serious accidents. An umbrella policy or increased limits are strongly recommended.
When Your Liability Coverage Isn't Enough
When a judgment against you exceeds your policy limits, your personal assets — savings, home equity, wages — are at risk. Umbrella policies with $1M to $5M in additional coverage are one of the most cost-effective forms of financial protection available.