Don’t Get Soaked: The Power of an Umbrella Policy

April showers may bring May flowers, but they could also bring unpredictable financial storms.

Just as a sturdy umbrella shields you from the rain, a comprehensive umbrella policy protects your lifestyle, assets, family, and legacy from unforeseen liabilities.

Think of it this way: We can help design a strategy for you to pursue your financial goals, and an umbrella policy aims to safeguard it. It acts as a powerful extension of your existing home, auto, and other liability insurance, providing an extra layer of protection. This includes covering legal defense costs from an unexpected event, which could quickly drain your savings.

Here are a few real-life examples of unexpected events that highlight the power of an umbrella policy:

• A teenage son crashes a car full of friends, causing injuries. The resulting lawsuit exceeds the limits of the auto insurance policy. An umbrella policy steps in to prevent the family’s assets from being wiped out.
• A couple faces a dog bite claim. Legal defense costs and a potential settlement could be significant. Thankfully, the umbrella policy takes effect, sparing financial hardship.
• A family throws a pool party. Unfortunately, a neighbor’s child gets injured. The parents sue, claiming the pool area wasn’t safe. The homeowner’s insurance might not cover the full cost of the lawsuit, but an umbrella policy would help defend the claim and cover any settlements.

These scenarios illustrate the potential for even minor incidents to snowball into major financial burdens.

Are you a candidate for an umbrella policy, and how much coverage do you really need? A productive conversation starts with taking stock of your “obvious assets,” like your home, savings, investments, etc., and determining what financial confidence looks like for you.

Here are some key takeaways:

• Umbrella policies are relatively inexpensive, typically starting at around $200 per year for $1 million worth of coverage.
• They provide broad liability coverage, extending beyond home and auto insurance.
• They can save you from financial hardship in the event of a lawsuit, even if the claim is frivolous.

Don’t wait for the skies to open up before you realize you need an umbrella. Simply click reply to this email to find out if an umbrella policy would be right for you.