It’s a common misconception: Personal Umbrella insurance is too expensive and only for rich people. But the reality is, for the vast majority of us, our typical possessions and everyday activities make umbrella coverage essential. So who could benefit from an umbrella? People who:
- Drive a car or let someone else use their car
- Host dinner parties or other gatherings
- Use social media sites
- Have children and participate in carpools or other activities
- Own a home, rental properties or multiple residences
- Have a pool, hot tub, trampoline, ATV, boat, motorcycle or other 'toy'
- Have a pet or occasionally watch a pet for someone else
- Travel overseas and rent a car
While many of these activities are covered by underlying policies, a few are not and Personal Umbrella Policies may apply in that instance. For example, most auto policies have geographical restrictions, but umbrella policies can provide worldwide coverage. An umbrella policy will also protect you damages exceed the limits of your underlying policies. Other points to consider:
- Umbrellas may kick in when underlying home and auto policy limits are exhausted and can help fill potential gaps in coverage.
- Liability coverage on an auto insurance policy can fall short if you’re in a catastrophic car accident
- Damages can add up quickly if you are sued for hospital bills, lost wages, and pain and suffering.
- If you’re sued for an accident and can’t pay the damages, plaintiffs can go after your income and, in some states, your retirement savings.
A Personal Umbrella is usually very affordable. A $1 million umbrella, in most cases, is less than $200 for an annual policy. Give me a call for a conversation about your Personal Umbrella policy.