Wealth management is something that everyone should practice – not just the rich. For most, life is a steady process of earning, saving, investing, and gradual wealth-building. Families work hard and strategize for the future, hoping nothing derails their plans. While they are focused on accumulating assets and wealth, too few take the time to protect their current and future assets against liabilities that could threaten to take them all away. Umbrella insurance is personal liability insurance that provides an extra layer of protection around your assets, helping you to stay on track even in the midst of a lawsuit.
I Have Home and Auto Insurance. Do I Really Need an Umbrella?
Home and auto insurance are your primary defense against accidents you are responsible for at your home, outside your home, and on the road. Whether you cause a fender-bender at a stop sign or someone trips over the broken step on your front porch, home and auto liability is usually enough to cover minor to moderate damages.
But what about a major accident? What if your teen driver causes an accident that results in a victim being permanently disabled? What if a tree in your backyard falls through a neighbor’s roof, resulting in the loss of their beloved family pet? In these types of scenarios, a judgment against you could reach $1 million or more – an amount that far exceeds the coverage on most home and auto insurance policies. If your insurance comes up short, you could be held personally liable for paying the remaining damages out of pocket.
Could you afford to pay hundreds of thousands of dollars from your personal savings accounts? Would you need to liquidate some of your investments and assets to satisfy the judgment? Even if your net worth is too low to pay for the damages, a court could still order garnishment of your future wages or inheritance to help cover the debt. In other words, everyone is at risk of financial ruin in a lawsuit – not just the wealthy.
Do you drive to school or work? Do you have a dog or a swimming pool? Do you ever host family or friends in your home? Believe it or not, these seemingly ‘normal’ activities can significantly increase your risk of being sued. It is all the more reason to protect yourself against the possibility of a major financial liability.
Your Personal Umbrella
You can purchase umbrella insurance from the same place you purchased your home and auto insurance – right here at Ellis Insurance. Our team understands the need for excess personal liability coverage beyond the coverage in your primary policies. We can offer umbrella policies with coverage between $1 million and $5 million, depending on your needs.
To qualify for coverage, your insurer may require that you carry the following minimum amounts of coverage on your home and auto insurance:
- $300,000 or $500,000 homeowners liability
- $250,000/$500,000 auto bodily injury liability OR
- $300,000 combined single limit (CSL)
If you need help getting umbrella insurance, or bringing the limits on your homeowners and auto insurance up to the standards of your umbrella issuer, contact an agent here at Ellis Insurance. We can provide you with a customized risk assessment and coverage evaluation. We will shop around to find umbrella coverage that meets your needs and search for discounts that might qualify you for additional savings, such as buying your home and umbrella insurance from the same carrier. Call us today for more information. We look forward to serving you soon.
Is umbrella insurance a part of your asset protection and wealth management plan?