Why You Should Consider an Umbrella Policy

Posted on: Wednesday, January 22, 2014

Sadly, we live in an increasingly litigious society where courts award judgments in the millions. It is unlikely that any of us will be sued for more than we are worth, but awful things happen every day which force people to worry that their lives will be upended in a lawsuit. These are times when a relatively inexpensive solution, the Personal Umbrella Policy (or PUP), would erase such fears.

The PUP formula

There is a formula to follow in order to determine if you need an Umbrella policy. 

  1. Add up all your assets. Include the value of your home, your life savings, retirement savings, stocks, bonds, and any additional property.
  2. Add together the liability coverage on your homeowner’s and automobile policy.
  3. If the liability coverage does not exceed the value of your assets, then you absolutely must purchase an Umbrella policy. If your coverage does not exceed your assets valuation, you should still consider the benefits that the extra coverage will afford you.

Umbrella policies offer additional liability coverage for claims which exceed existing automobile or homeowner's insurance policies. Anyone can benefit from the extra coverage, particularly with today’s tendency for disputes to end up in court. Imagine that you or someone in your family had an accident while driving on very slick roads, resulting in injuries to a family of four. Your policy probably only covers you for $250K, but you are sued for $1M. A PUP would protect you for any amount beyond the initial policy coverage, at a fraction of the cost. This is protection for your home, your peace of mind, even your family’s future.

Stress free


It really doesn’t matter if a large jury verdict goes against you. Homeowners can be sued by vindictive neighbors, or as the result of a dog bite. You may have to pay for an attorney to defend you, no matter the result. With an adequate umbrella policy, the money at risk will be the insurance company’s instead of your own. That means that corporate lawyers will be on your side, for a change, and your defense costs will be covered as part of the umbrella policy.

Low cost

Here’s the best thing about an Umbrella policy – it only costs a few dollars a day for the first $1M of coverage. Any lawyer will tell you that you can’t be over insured for a lawsuit. Damages and costs add up quickly. Save yourself, and your loved ones, some peace of mind today. Explore the very real value of a Personal Umbrella Policy.

Questions?

At Core Benefits Group, we know that you have questions and concerns regarding all types of insurance policies, including Umbrella policies, and we are ready to help. Please call us at 1-877-214-2969.

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