Editor’s Note: This post was originally published March 29, 2016. The information is still current as of this date.
A 60-second read by the Baron Team: You probably have homeowner’s insurance for your home and car insurance for your vehicle, but do you have umbrella insurance? In a society where many of us are concerned about personal liability and the possibility of being sued rightly or wrongly, the more assets you accumulate the more important personal liability protection becomes.
Umbrella insurance will help to cover your legal expenses if someone is injured by your car or in your home. For example, imagine that you are driving to the grocery store on a Saturday afternoon. You brake for a running deer and the person behind you rear-ends your car and is injured. Now, the other driver wants to sue you for more than your auto policy will cover. This is where umbrella insurance would come into play. Umbrella insurance will help you pay for the difference instead of having to take that money out of your own personal savings.
When looking to get Umbrella insurance, there are a few things you may want to know:
- You must ask for umbrella liability insurance. Since the commissions are so small, your insurance agent may neglect to mention it.
- Insurance companies may require you to carry a required amount of liability insurance on your homeowners and automobile policies and to place both your auto and homeowners policy with the same company. Perhaps do some research, or talk to your insurance agent about this.
- Depending on your situation, you may want to look to either have enough protection to exceed your assets, or carry a minimum of $2 million of personal liability with an inexpensive umbrella liability policy.
If you have any further questions, don’t hesitate to contact the Baron Financial Group team.