December 24, 2014

What is an umbrella policy? Who might consider having one and who should not?

2 thoughts on “December 24, 2014”

  1. Garrett Haag says:

    An umbrella policy was created to provide additional coverage when a lawsuit brought over injuries or property damage that you cause that exceeds the liability limits on your car insurance, home insurance. It is generally for people who have a large amount of assets that they are concerned about protecting from lawsuits. If you dont have property or a car you would not need a policy but if you own rental properties or a business with food traffic you may want the policy. If just depends on what you want to protect. Dont over do it with insurances just because the sales people tell you to get it.

  2. Mike Finley says:

    Well said, Garrett. Let’s review.

    Umbrella insurance provides you insurance above and beyond your car and home liability limits. They are very cheap and you can usually find a policy with your current insurers.

    Consider having one if your net worth is above $500,000. If you are below that amount, it is probably not necessary. Consider a policy that runs 2 times your net worth. This should protect you from people who sue you over some incident whether or not you are at fault or not. Buy it if you need it and discard it if you don’t.

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