So, who needs an umbrella policy? Everybody!
I can see you all shaking your heads in disagreement with me, but think about it. Who expects to have an accident? Who expects to nod off at the wheel and drift into the path of an 18-wheeler transporting hazardous waste? Who expects to run into a school bus filled with children? Parents send off their teenage drivers with stern warnings not to text and drive, never expecting to receive a call from the police informing them that teen has just rear-ended a minivan with a family of five inside. Think of the recent college graduate with hand-me-down furniture, a little apartment and an older model car, but who has huge earning potential – do you think if they become legally liable for a loss there won’t be a judgment that attaches future earnings?
Let’s face it, even those of meager means have assets to protect, but usually it will comes down to a question of affordability. However, umbrellas pack a big coverage punch for a very modest premium. A $1 million umbrella for a home and two cars may cost as little as $14 per month. For that $14 per month, you can get $1 million of protection. That sounds like a pretty good deal.
If you have not reviewed your limits of liability lately, please take time to look at your insurance policies and discuss the possibility of increasing your liability limits with your insurance professional (or me).
Jon Jepsen, CIC