Planning for the future should include an umbrella

Studies show that most consumers who have investments, savings for retirement or college, or any type of accumulated wealth are missing a very important insurance tool to protect their assets from a large loss.

Most Americans view auto insurance as necessary to protect against the costs of a car accident. Likewise, it’s common knowledge that homeowners insurance helps families rebuild their lives and homes after a fire, tornado or other peril. An “umbrella” policy is not seen by many as critical, but anyone who wants to protect their accumulated wealth should consider buying it.

Umbrella liability insurance covers you in many situations if you are held responsible for bodily injury, property damage, or personal injury. The product got its name because it adds a higher level of protection above auto, homeowners and boat policies, which are “primary” policies. Umbrella coverage kicks in after primary insurance is exhausted.

An example would be driving your car and losing control and causing a 5 car accident, and several people involved require medical attention, and some property is also damaged.  Or having a little girl trip on some uneven concrete in your driveway and doing a face-plant, and subsequently you are sued by the girl’s parents.   It would not take long to exhaust the limits on your policy in those scenarios.   Once that happens, your umbrella policy comes into play and covers your expenses up to the limit of the umbrella policy, which is usually a very large amount.

Typically, insurance agents sell an umbrella policy in conjunction with auto or homeowners coverage. You can usually add $1 million of liability insurance for a very affordable premium, and discounts are available if your insurance agent has also written your homeowners and auto insurance.

For more information about insurance for your home, investments, vehicles, or business, contact Judge Fite Insurance Agency today at or 214-446-2571.

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