Do I Need an Umbrella Insurance Policy?
Many of us hear the words Umbrella Insurance and coverage amounts of $1 Million dollars and we immediately think we don’t need that.
Well, if you have a retirement account, own your home, have a couple cars, you are a likely a good candidate for an Umbrella Policy to protect those assets from a lawsuit.
Imagine that you are nearing retirement and feel pretty comfortable with how you are set to enjoy those wonderful years and then the unfortunate thing happens and you are in an auto accident. You aren’t badly hurt and you have insurance to cover your car so you should be ok, right?
Then you find out that the car you hit was a brand new luxury vehicle and inside that car was a top executive of a large company, his injuries are serious, and the accident was ruled as your fault.
You would be responsible for the executive’s medical bills, lost wages and time away from work which could end up close to a million dollars or more.
Most auto policies carry maximums of $300,000 to $500,000 in liability coverage.
Without an Umbrella Policy to protect you, this could spell disaster for you.
Once your auto insurance paid out the limits on liability, you would personally be responsible for any costs in addition. You could easily lose your home, your retirement fund and any other assets you may own. An Umbrella would add additional protection to take care of the costs.
Umbrella Policies are sold in increments of $1 Million and the cost is relatively inexpensive.
Don’t let your life long dreams drift away when you could be protected. They cover Bodily Injury, Property damage, other kinds of legal suits, and legal fees.
It is never too late to sit down with your Agent and make sure you understand fully, what coverages you have and if you are well protected should the unfortunate hit you. We all work too hard to accumulate our assets and don’t want to lose them due to a single mishap.
Final Word – Like an umbrella on a sunny day, an Umbrella Insurance Policy is something you don’t expect to use. But, also like an umbrella, it’s much better to have it and not need it than to need it and not have it. For just a couple hundred dollars a year, you can guarantee your assets won’t be soaked by an unexpected lawsuit, and that you won’t have to liquidate precious assets – such as your retirement fund or a college savings fund – to bail yourself out. (ref. Bankrate)
Linda DeWoody
Personal Lines Account Manager
