You buy insurance basically for one reason – to protect yourself if something bad should happen. Most of us have home, auto, and life insurance, but do you have protection against a catastrophic liability claim? If you don’t, perhaps it is time for you to consider liability insurance in the form of an umbrella policy. An umbrella policy is liability insurance that will supplement the basic liability policies you already have such as your home, auto, or renter’s insurance.
Why have an umbrella policy?
You have worked hard for everything you have achieved. You take pride when you see that you have a car, a house, investments, and retirement accounts. All these things, including your checking, savings, and future income are all considered assets – your assets.
Did you know that all of these assets would be exposed and vulnerable if you were to have a big liability claim that went above the limits of your standard policies? If you are involved in an unforeseen event, such as a tragic accident in which you are held responsible for damages or bodily injury would you want them to come after all the above noted assets? How would you feel if your wages were garnished? I would say the answer to this question is terrible! And I would say the answer to the question whether you want all of your assets vulnerable would be a resounding NO!
What additional coverage does an umbrella policy provide?
People ask two big questions when thinking about an umbrella policy.
- How much extra coverage does an umbrella policy provide? Standard policies start at $1,000,000 in extra liability coverage. The amount can be increased based on individual needs.
- What is the potential cost for an umbrella policy?The average cost for most people to add this coverage is around $20 a month. This is a small price to pay to prevent the possibility of financial ruin due to one misstep or unforeseen accident.
But before you decide whether an umbrella policy is right for you, there is something else to consider. I would like to add a third important question to the list. It is the one question that gives you the very important answer to why you are getting the policy in the first place.
What can an umbrella can protect you from? The short answer is a lot! Here is a sampling:
- Lawsuits
- Liability of rental cars
- Liability of rental properties
- Financial ruin
- Property damage in some cases
- Garnishment of wages
When you stop to take stock of what you have achieved in your life, consider how you are protecting the assets you have accumulated. This kind of thinking often occurs when you start thinking of retirement. It is that time of life when you have many of the things you want and need. You may be building your financial assets, which are critical to having the retirement you want. Can you afford for them to be at risk?
Contact me or more information about an umbrella liability policy that can protect you and your assets from unforeseen catastrophes.
Larry