Estate Planning · Insurance · Lawyers

What You Should Know About Umbrella Insurance and Protecting Assets

Umbrella Insurance Picture

This article was edited on 06/13/2017. The original article, “5 Things to Know About Umbrella Insurance,” was  published on 06/13/2016.

Recently, I spoke with an individual who was concerned about a family member driving after suffering some health issues. In case you are wondering, the family member had been cleared by a doctor to start driving again. 

What can I do, asked the individual? Although, there are several ideas that come to mind to handle the family member driving, here’s something to think about – umbrella insurance. 

Let’s start by clearing the air. First, I have no business affiliation with an insurance company. Second, nor do I sell insurance products. Next, now that we have that tidbit out-of-the-way, here’s some information:

What is Umbrella Insurance, you may ask? It is a type of insurance that is a little known wonder to most of us. When I mention this product to some individuals, the responses range from puzzled looks to blank stares.

Then, I explain how the policy limits on their insurance may not be sufficient if they are faced with a lawsuit (accident/injury) involving their home, automobile or boat. Umbrella insurance is additional coverage that kicks in when your primary policy is not enough to cover the amount being sought in a lawsuit.

Why should I care about Umbrella Insurance? Here are a few examples:

  • Is your house open to people for gatherings, bar-b-ques, or parties?
  • Are you driving around running errands, commuting to work or taking road trips?
  • Do you love boating and have people onboard for fun on the waterways?

For many individuals, having umbrella insurance can offer a piece of mind because lawsuits often seek more than the limits on primary policies. Thus, you could be personally liable for any amount above your policy limits.

How much does umbrella insurance cost? That’s a great question – which can be answered by your insurance agent. In addition, there are many factors to consider, so speak with your agent about your particular situation. Regardless of the size of your bank account, this is a product that is worth taking a closer look at. In many instances, the additional coverage is not as pricey as you may think.

5 Things to Know About Umbrella Insurance:

  1. Provides Additional Insurance Coverage for Homes, Automobiles and Boats.
  2. Rates are not as Costly as you may Think; Contact Your Agent.
  3. Lawsuits Often Exceed Primary Policy Limits for Accidents/Injuries.
  4. You may be Personally Liable for an Amount Above Your Primary Policy Limit.
  5. Protection for Assets and Your Estate.

5 Things: Umbrella Insurance

Hopefully, this will give you some insight into what umbrella insurance is. The purpose of this post is to provide you with information so that you can make informed decisions about how best to handle your assets and plan your estate.

Aquanetta J. Betts is an attorney licensed in Maryland and the District of Columbia. Her law practice focuses on wills, trusts, estates, charitable giving and small business matters. She can be reached at www.abettslaw.com. Connect with her on social media: Facebook, Facebook – Like us, GooglePlus, Twitter, Instagram and Pinterest.

This information is not to provide legal advice and is for informational purposes only. Consult with an attorney about your particular situation. 

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