Umbrella Policies:For Your Rainy Days

It’s hard to watch TV or listen to the radio and not hear an advertisement from 1-800-Ask-Gary or 411-pain.  Our culture has never been more litigious and Florida is one of the worst states for insurance claims.  Let’s say you’re working with your local insurance agent to make sure that your assets are all properly protected.  However, if you get in an accident with serious injuries and you’re at fault, your car insurance coverage probably will not be sufficient.  But at the same time, you don’t want to pay for a crazy comprehensive car insurance policy just in case something happens. So what can you do? If you don’t have sufficient coverage, your future wages can be garnished and your assets can be seized and most of us can’t afford to rebuild our lives after a major setback like that.

The answer: an umbrella policy.  An umbrella policy can be one of the most important forms of liability coverage.  Umbrella policies go above and beyond the coverage and limits of your homeowners insurance, auto insurance, and boat insurance policies.  If you’re in an accident and your liability on your boat insurance has been exhausted, your umbrella policy will kick in.  Your umbrella policy will also cover claims that would not typically be included in your regular policies.  For example, your umbrella policy could pay for your attorney fees and other court costs.  Your umbrella policy should cover your net worth, but you should set up a meeting with your local insurance agent and discuss whether or not an umbrella policy is the right choice for you.