Importance of Personal Umbrella Insurance Policy

Angela Petrucci, Personal Lines Account Representative, brings you this important information about asset protection.

A component of a solid asset protection plan, which sadly is too often overlooked, is the umbrella policy. This coverage truly helps protect your assets.

Umbrella coverage is often available in limits ranging from 1 to 5 million dollars and is designed to protect you by providing an additional layer of liability coverage if you are sued for damages to other people’s property or responsible for injuries caused to others in an accident. It also extends coverage by protecting you against libel, slander, vandalism, and invasion of privacy.

Here is an example:

Let’s say you have an insurance policy with liability limits of $300,000. You are driving down the road and cause a large accident involving six vehicles. Each driver involved in the accident is hurt and must be taken to the hospital. The insurance company receives multiple invoices totaling a $1.3 million judgment against you. The insurance company will pay $300,000. You will be responsible for the remaining $1 million.

So, where does this money come from? The money could be taken from any assets such as savings, investments, retirement plans, and even your future income. If you had $1 million of coverage under an umbrella insurance policy, you would be covered without any out-of-pocket (other than your monthly premium).

If you’d like to discuss protecting your assets with a Personal Umbrella Insurance policy, contact us, we’re ready to answer all your questions!