Why is it Important to have Umbrella Insurance

As long as you can earn a livelihood, you should have an Umbrella Liability Insurance policy. We recommend that everyone have at least a $1 M Umbrella Insurance Policy to provide Liability coverage beyond the limits of their Auto and Homeowners Insurance policies, even if they have less than $1 M in assets. That’s because in the rare event you are sued, you could be forced to pay a legal judgment from your current assets and  future earnings. The policy can also pay for defense, which can quickly add up even if you win your case. It’s an inexpensive way to protect your finances from devastating lawsuits.

Another important feature of Umbrella Liability Insurance Policies is protection in a lawsuit against you for Slander or Defamation of Character, or for decisions you might have made as a volunteer member of a Nonprofit Board. If you regularly blog about controversial topics or rant on Facebook, an Umbrella Liability Insurance Policy just might be a good idea to protect your assets from a litigious individual who believes you have damaged their reputation. Your retirement funds, investments, savings and even your future earnings are at risk if a judge allows someone to garnish your wages to pay off a settlement. In some states, the equity in your home can be part of the judgment and you would be forced to sell your home to pay someone who sues you.

If you own a house and have a retirement account or other investments, an Umbrella Liability Insurance Policy of $1 M or more should be part of your financial plan. Most insurance companies offer these plans in increments up to $5 M and $10 M.

Umbrella Liability Insurance Policies are inexpensive because they kick in only after you have exhausted your liability coverage under your Auto or Homeowners policy. Most insurers first require you to have $300,000 or $500,000 in liability coverage on your car and home. The average cost for a $1 M Policy is $200 annually -- which you might find a relatively low price for the peace of mind and security it offers.

For a quick quote, you can contact us at contact@abis-group.com or call us at (800) 554-2247.