Do I need an umbrella insurance policy?
Did you know that homeowner’s and auto insurance policy limits rarely exceed $500,000? If that is your only coverage, any liability over that amount could be out of pocket. For most people, one of the most cost-efficient ways of securing higher liability limits is by purchasing an umbrella insurance policy. Umbrella insurance supplements your basic liability policies at a much higher limit than those policies.
Why is umbrella insurance so important?
Its main purpose is to protect your assets in the event something happens, like an accident, and you’re held legally responsible for any bodily injuries or damages. Personal injury lawsuits are on the rise, along with the size of their verdicts. And, if you are sued and do not have enough liability insurance or an umbrella policy to cover costs, all of your assets are exposed. Everything you own is considered an asset, including your car, your house, your retirement accounts, your investments, your checking, and savings – even future income.
While umbrella insurance is not costly, it is the most frequent deficiency that we find in our insurance reviews. At a minimum, we recommend an umbrella limit that matches an individual’s net worth.
For more information on umbrella insurance or any of our liability solutions, please contact SignatureFD to speak to the Solutions team.