Lately, I have been asked about Personal Umbrellas and who needs one.
Personal Umbrellas will help protect you from the rare but expensive claim which exceeds your liability limits.
Umbrellas are for everyone.
All of you need this policy — even if (and especially if) they're not millionaires. Do they drive? Have kids? A dog? Own rental properties? A loss can happen to anyone at any stage of their life. I bought my first Umbrella Policy when I was in my 30's, and one of my dad's friends asked why? "you don't have $1m in assets to protect.
I replied I was protecting my future income. He replied, Didn't think of that, smart move.
An umbrella pays for medical and legal expenses beyond homeowners/renters and auto.
An umbrella sits on top of homeowners/renters and/or auto policies, adding an extra layer of coverage above and beyond those limits. Insureds may not know their current policies may not be enough when a loss occurs. Even with limits of $250,000/ $500,000, you may exhaust your limit. How much does an air ambulance ride to the hospital cost?
When a covered loss occurs, the Umbrella kicks in to protect assets and pay expenses.
An accident can wreak financial havoc quickly – how high will a judgment go? Anything above their homeowners/renters and/or auto policies limits will come out of their pocket. And a full 75% of folks recently surveyed said they didn't know an umbrella can protect them from financial loss, but it sure can!
The critical part of the Umbrella that some people often miss is to add Uninsured and Underinsured Motorist Coverage to the Umbrella. This protects you if the at-fault party has lower limits. Your Umbrella will pay you if you need it.
Send your questions to davidwinters@Mnipn.com