When considering the different types of personal insurance you may need, it is important to evaluate whether you should obtain umbrella insurance to protect your personal assets. It is important to know that assets such as certain possessions, investments, and financial accounts could be at risk should you ever face a lawsuit in addition to the liability coverage you carry on your homeowners or auto insurance.
Although most standard policies do allow you to purchase large amounts of liability coverage, that may not be enough liability coverage to protect all of your assets. The best way to ensure you have the proper protection is with personal umbrella insurance.
What Are Your Personal Assets?
Your personal assets include the physical items, real estate, as well as any financial and investment accounts that you own. These assets are considered to be your wealth and make up your net worth. For some, these assets can be quite extensive.
Unfortunately, all of this wealth could be at risk if you are not adequately protected with the right personal umbrella insurance. Most people, even those with a higher net worth, falsely believe their assets are protected under their other personal insurance policies, only to find out too late that they are not.
What Is Umbrella Insurance?
Umbrella insurance is an insurance policy that covers any gaps in your homeowners or auto policies that could leave your assets vulnerable and subject to seizure. It also provides additional liability protection in the event you are sued and the liability coverage of your other policies is exhausted.
Instead of being forced to turn over assets if you are held responsible for some sort of damages, personal umbrella insurance protects these assets up to the amount of coverage you purchase.
Who Needs Personal Umbrella Insurance?
Personal insurance that includes umbrella insurance is recommended for anyone who has assets and wealth they wish to protect. Even if your only asset is your home, this type of policy can prevent you from losing it in a liability lawsuit. Those with more substantial assets may be especially at risk. Today, people are often more willing to file lawsuits against those they view as being wealthy and better able to afford to pay for damages.
Considering this, it is recommended that anyone who has wealth to be protected obtain enough personal umbrella insurance to cover all assets to prevent the possibility of asset seizure. These supplemental policies are generally written to provide between $1 million and $5 million in coverage and can be purchased from most agencies who write homeowners and auto insurance.
Whether your assets consist of real estate, investment accounts, or even expensive antique jewelry, you surely do not want it seized to pay for a judgment in a liability suit if your personal insurance coverage is insufficient. Protect your wealth by purchasing umbrella insurance to cover your assets beyond the coverage provided by other policies.
Personal umbrella insurance offers you peace of mind that should you ever be financially responsible for damages to another party, your wealth and personal assets will be protected against seizure!