Don't get caught without and umbrella? - Why would anyone need an UMBRELLA of 1,000,000 or more?
I am finding that Insurance is a funny thing. No-one likes paying premiums, but everyone is sure glad they have insurance when something bad happens.
I have been suggesting to all of my clients the need for an umbrella policy. Normally, when I suggest it — I get the crinkled nose and the side-ways glance with the question “how much?” Then a really quick “no thanks.” Followed by — “I already pay enough for insurance!”
That may be true — but many of us are at risk and we are cheeky about how much exposure we actually have. Here are some examples — including a link to a New York Times Article about Umbrella Policies.
In this sue happy environment, there are many scenarios where one might be taken to court for more than $100,000 or even $1,000,000. One of the most likely events is to be at fault in a car accident. Medical costs alone can exceed $100,000 per person. Now imagine if there were 2, 4, or even 6 people in the car. Imagine if some of them were children. Here is one example from a NY Times article on umbrella policies:
Don’t skimp on coverage. Coverage at least equal to your current net worth is the typical recommendation. However, if coverage falls short, a judge could order you to pay up, liquidating savings and investments (retirement plans and trusts are usually safe), real estate and personal property — and even garnishing your wages. Consider adding coverage to equal the present value of your employment income stream.
In most cases, personal umbrella policies are available in million-dollar increments, from $1 to $5 million. While an umbrella policy is not required, it may offer increased protection in the unfortunate event of an accident. No one likes to discuss insurance — however we can all agree it is a relief after an accident when you hear an agent say — “your covered.”
If you want to know more about Umbrella policies or simply have a question about your personal insurance be sure to call me at 440–527–0304 or via email at firstname.lastname@example.org I would love to hear from you!