Do You Need A Personal Umbrella Policy?
If you are concerned about protecting your current assets or your future earnings, then your answer is yes. One of the biggest misconceptions is that if you don’t have a high net worth you don’t need an umbrella policy—the “you can’t get blood from a stone” theory. But, the reality is that if you are negligent and cause injury to another party they may not only go after what you have, they may also go after what you will have—your future earnings.
An umbrella policy is a low cost policy that provides $1 million or more in coverage to protect you, your family and your future. An umbrella policy can protect you against claims arising from use of your autos and your property but it can also cover you for claims from watercraft, snowmobiles, motorcycles, recreational vehicles and more. The umbrella policy picks up where the auto/home/boat/other personal policies end, covering you for claims above those base policy limits, which is how it got the name “umbrella.”
The limit you choose should be high enough that you feel comfortable that it will protect your current and future assets and earnings. Although most companies offer from $1 to $5 million in coverage, higher limits are also available. In today’s litigious society even a small incident could prove to be financially devastating.
With umbrella policies starting at about $130 a year you don’t have to go into debt today to avoid financial hardship later. Please contact us here at The Burns Agency today to discuss adding an umbrella policy to your insurance plan.
