Reasons why you should have an Umbrella policy: 1. Without it, you could lose everything...If you cause a car accident and the other driver sues, your auto insurance covers you up to the liability limit. Same goes for your home insurance if the mailman slips on the steps. An umbrella liability policy pays for settlements and legal fees above your underlying policy limits. Without this insurance, your wages and assets are at stake. 2. Liability risks are everywhere...Per industry data, more than 80% of umbrella losses are auto-related. Even if youre the safest driver, your teen may not be. Redoing your bathroom or kitchen? Your general contractor may not adequately vet subcontractors for workers comp or liability. Host a lot of parties? If a guest gets into a drunken-driving accident, the victim can come after you. Got a pool, hot tub, or boat? Employ a nanny or a housecleaner? Then you have risk factors. 3. Youre protected against the worst-case scenario...The average umbrella settlement is $306,000, and some settlements are much, much higher. Thats why many insurance experts recommend an umbrella policy is a must for those with significant net worth. Insurance is there to stop an accident from being a financially life-changing event for you. 4. A lot of coverage costs very little...a quick rule of thumb for you is to have coverage equal to one to two times your net worth. That way you are not just shielding your money, but there is defensive coverage for large and serious claims.
Posted on: Fri, 07 Mar 2014 15:44:45 +0000
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