A personal umbrella or “excess liability” policy is an inexpensive supplement to the liability coverage you carry on your personal auto and homeowners/renters policies. Umbrella coverage can be purchased in $1 million increments and is quite affordable. The main purpose of an umbrella policy is to protect your personal assets from an unforeseen event in which you or a family member could be deemed liable for damage or injuries.

When choosing your umbrella limits, consider at least these 3 things:

• The risks you may face – The risk of causing an accident in your vehicle. Do you have a young driver in your household? Is your home or backyard a hub for neighborhood kids or friends? Consider anything that could those around you at risk.
• The value of your assets – Your assets include things such as your properties, possessions, savings accounts, retirement funds and other investments. The more assets you have to protect, the higher the umbrella limits you should consider.
• The potential loss of future income – Liability claims/lawsuits can result in loss of both current and future income so even those with few current assets to protect may want to consider an umbrella policy.

We recommend everyone have an umbrella policy. We feel it’s a low price to pay for the financial peace of mind it can offer.