INSURANCE

Protect Your Assets with an Umbrella Policy
Many people who consider themselves to be of modest means might be surprised to learn that they’re worth more than they think. Let’s suppose you were married in the early 1970s, bought a nice house in the suburbs a few years later and, over the years, gradually improved the house to meet all of your changing needs. That house may have cost about $50,000 at the time.

Today, even in a slow real-estate market, that same house could easily fetch more than $250,000 — a nice return on your investment. Add to that the other assets you’ve probably accumulated along the way, you may have a net worth that makes you vulnerable to loss. If, for example, you are found to be at fault in a motor-vehicle accident that kills or seriously injures someone, or your dog attacks a neighbor, you could have to pay on a huge legal judgment.

Automobile and homeowner’s insurance provide protection for typical risks and incidents. But, if you are involved in unusual circumstances where a jury may decide that larger than normal compensation is appropriate, you could lose everything you own to satisfy a claim.

The best way to avoid a financial wipeout is to investigate personal umbrella liability coverage. Umbrella coverage provides liability limits over and above the limits available from your individual auto or home policy. It also broadens coverage to provide protection for liabilities not covered in the basic homeowner’s contract, such as personal injury. The coverage is subject to underwriting approval by the insurance company and includes requirements for certain minimum underlying limits on your automobile and homeowner’s insurance policies.

Personal umbrella coverage can provide a lot of extra protection for a comparatively small additional annual premium. It’s a bargain for anyone with a lot to lose.