Should I Get an Umbrella Insurance Policy?

The admonition, “expect the unexpected” is impossible to adhere to; however, what you cannot expect, you can at least prepare for to a limited degree. That is why insurance exists, to provide money for situations you cannot always prevent or foresee. Many people choose to provide themselves with an extra layer of insurance protection called an umbrella policy.

What is an umbrella policy

An umbrella policy covers liability costs above those handled by the initial policy. It provides this extra coverage for several policies, hence the name umbrella. Due to the umbrella policy being unlikely to “kick in” it is usually an inexpensive option. In a way, umbrella insurance is a booster shot for your existing home, renter or auto insurance; it picks up after your ordinary insurance is exhausted as well as covering some items your other policies do not cover such as liability from slander or liable.

Who needs an umbrella policy

Almost anyone has the potential to benefit from an umbrella policy. However, it is especially important for those with a lot to lose or who ever expects to have a lot to lose in a lawsuit. While it is true that you cannot get blood from a stone, a lawsuit judgment can hang over your head until you do have the means to start making payments.

Should you purchase an umbrella policy

Each individual must answer that question for his or her self, but consider the follow questions when making your decision.

*Are your assets extensive enough to tempt someone into suing you?
*Do you live a lifestyle that makes being sued more likely (sports cars, pool, trampoline, boat etc.)?
*Is your income above average or perceived to be above average (doctor, lawyer, upper management)?
*Do you have a high profile job?

A yes answer to any one of these questions means it would be in your best interest to discuss the costs and benefits of an umbrella policy with an insurance agent.



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