Million Dollar Baby

Parents of teenage drivers, landlords, pool, boat or trampoline owners and, well, anyone else, listen up! It's possible that you are just a car accident or driveway fall away from losing everything.


You may think that having auto and home insurance is all you need to protect yourself from money-grubbing plaintiffs, but you’d be wrong, which is the reason you need an umbrella liability policy. Think you don’t need an umbrella because you have nothing to keep dry? Think again. What you’re worth today isn’t all that you have to protect. A claim greater than your existing auto or homeowner’s coverage can allow a claimant to garnish your future income. Ouch.

An umbrella policy (a.k.a. liability policy) is designed to offer an extension of coverage above and beyond where your homeowner's or auto policies fall short. Let’s say you run a red light and hit a surgeon crossing the street. The cost to cover injuries and loss of wages amounts to $750k but you only have $100k of auto liability coverage. Your umbrella policy steps up and covers the extra $650k claim against you.

Your current net worth and future financial security are well worth the cost of this relatively cheap coverage. A $1 million policy can be just over $200 a year. Over time, it's important to make sure that your coverage keeps up with your net worth and income. If you don't have an umbrella policy, make the call to your auto and home agent. It could be the most valuable call to protect you and your family!

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