At Glass Insurance Agency, we aim to help our clients protect, preserve, and even build their wealth over time. Asset protection is an important part of that strategy, which is why we recommend umbrella insurance as a way of safeguarding your family and future against the devastating effects of a major lawsuit.
Without it, much of what you have worked so hard to attain could dissolve before you, and your future goals could be in jeopardy, too. Continue reading to learn more about umbrella insurance and why it could prove to be one of the wisest investments you ever make in your financial future.
The Reality of Litigation
What is your risk of being sued? The fact is everyone is at risk. All it takes is one accident, whether caused by you or someone in your household. Certain factors drive your risk even higher, such as:
- Having a long commute
- Having a teen driver
- Owning a swimming pool
- Owning a dog
- Hosting guests in your home
- Owning a rental property
In a perfect world, there would be no accidents, and any damages you cause would be handled outside the courtroom. Unfortunately, though, litigation is a very real part of today’s society, and it seems that no one is immune to its effects. If you have assets, income, or future income and inheritance, it is possible that they can be seized, liquidated, or garnished to satisfy a judgment. In other words, it does not matter whether you are enjoying an early retirement or about to finish grad school, all it takes is one lawsuit to derail your plans for the future.
Sure, your homeowners, auto, and boat insurance contain liability protection, but even those policies are not enough to cover certain types of damages, such as libel, slander, false arrest, and damages you might cause while traveling abroad. Furthermore, even the highest homeowners and auto insurance coverage limits can still fall short of covering your liability in a major lawsuit.
Extra Liability Coverage with Umbrella Insurance
Umbrella insurance is specifically designed to be your fallback when a liability exceeds the limits on your primary insurance. Think of it as a safety net that keeps everything from crashing down under the weight of a heavy judgment.
Umbrella coverage comes with high limits – usually starting at $1 million and going up to as much as $5 million or more. The coverage is supplemental and only kicks in once your primary coverage is exhausted. For that reason, coverage is very affordable. However, you may be required to carry a minimum amount of liability coverage on your home and auto policies. This usually includes:
- $300,000 or $500,000 homeowners liability
- $250,000/$500,000 auto bodily injury liability OR
- $300,000 combined single limit (CSL)
When you work with an independent agent here at Glass Insurance Agency, you have access to umbrella insurance that is custom-tailored to fit your individual needs. We start by evaluating the value of your current assets, income, and future income, as well as the types of risks you face on a day-to-day basis. Then, we carefully shop around to find coverage that fits well within your insurance portfolio. For more information or to request your personal liability risk assessment, contact our office today.
What are you doing to protect your current and future assets?