Personal Umbrella Insurance
Insurance can really be expensive today, especially when you’re not covered correctly. The personal umbrella insurance is a separate policy in addition to what you should already have in place now for your liability insurance. This policy will basically help you in covering additional costs in which your original policy will not. It’s called umbrella because whether you need additional coverage for your homeowner’s, or auto, or rental liability insurance, this can be the policy to cover all of them, like an umbrella.
The costs of the umbrella policies are generally very reasonable in consideration to what they can actually pay on your behalf in a single claim. Your life savings can easily be lost in a law suit because of your inadequate insurance. For example, if you are fault in an auto accident and the other party has medical injuries to deal with, you are responsible. We all know how costly hospitals and doctors and ambulances are today and how it doesn’t take long for the bills to reach thousands and thousands of dollars. Most car insurance policies have a maximum of $250,000 for medical expenses. This is sufficient if it’s a minor fender bender. However, what if there’s a van full of people who need major medical care? What if 5 people in the van each need $100,000 in care totaling $500,000, and your covered for only $250,000? Yes, you will pay out of your checking account the additional $250,000 your policy doesn’t cover. That is unless you have arranged with your agent to set you up with the umbrella policy to cover the additional costs. Could you imagine in the unfortunate situation of a death involved due to your negligence of an auto accident? The standard $250,000 is definitely not going to be sufficient for a life and a lawsuit will surely have you at fault for maybe millions of dollars. Say goodbye to the house, stocks, bonds, savings, unless you have your self protected with the personal umbrella policy.
Some people have said that the wealthy Americans are better off investing money than wasting it on insurance policies. Well, times have changed greatly, and so have hospital costs and judgements from the courts. With the personal umbrella policy being in addition to the one which you already carry, the costs are extremely minimal in comparison to what you could lose without having it. Normally this additional coverage will only costs you a couple of hundred dollars a year. So if your are paying out say $250 for your coverage, for 10 years of coverage, you will be paying approximately $2500. And for 20 years of coverage, just $5000. What a time span of coverage for this little of money. If you are driving in the snow and ice and accidentally hit a jogger or a car that is full of kids, let us hope for yours and there sake you have this personal umbrella liability coverage. With the normal $250,000 maximum coverage, what if the party you are at fault too has costs over $1 million? You will sell what you have too in order to satisfy there claims for the excess of $750,000. Whether it’s your child’s future college tuition or your home that just got paid off or your stock portfolio they can use also. What a deal this policy has, right? How long would you have to put $250 a year in the bank in order to payout $750,0000? You are right, more than a lifetime. Don’t gamble what you have acquired over your lifetime without having this coverage for just a couple of hundred dollars a year. For what you can spend at restaurant one time for dinner and a bottle of wine, you could have a year of coverage for you and your belongings. This is especially true for high-net worth individuals, as they have the most to lose.