Protecting Your Assets – Why You Need Umbrella Insurance

You’ve done well for yourself. You’ve made the right connections, sealed the right deals, and invested properly. You have the nice house, the Classy car, the slick yacht and the bank ledgers to back it all up. You are the man!

Now you need to put some serious thought into protecting what you have. You earned it, it is yours. But in this day of frivolous lawsuits, moochers, and people looking to make a quick buck, all you have accomplished can be taken from you in a heartbeat. But what can you do to protect yourself and your assets?

In comes Umbrella Insurance.

100-dollar-bill-1Umbrella Insurance is low cost, extra, liability insurance. It is designed to be additional protection from major claims and lawsuits and as a result it helps protect your assets and your future. Umbrella Insurance provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies.

What this means is that if someone has a bit to much to drink at one of your parties, and slips and cracks their head open on your marble countertops… you’re covered. If someone gets the bends while scuba diving off your yacht… you’re covered. Just about any thing you can think of that some nut job liberal judge thinks you should be liable for… you’re covered.

An umbrella policy provides additional lawsuit coverage of a million or more. It provides added coverage for lawsuit defense costs, which easily can amount to over $100,000. And, it provides liability coverage for some lawsuits not covered by your regular car or house insurance. Umbrella Insurance can come in very handy if you’re sued over something involving a boat you rented on vacation, or a car you rented in another country.

How Much is It?

The best thing about Umbrella Insurance policies is that they are relatively inexpensive. In fact a good umbrella policy is likely the best deal in insurance. A policy usually costs under $200 for a million dollars in coverage, and an additional $100 for each additional million in coverage you purchase. As a general rule of thumb, you should always buy 1 million in coverage more then you think you will need.