Umbrella Liability Protection Can Be a Financial Life Saver

But many do people do not contemplate WHY Personal Umbrella Liability Insurance is important to have.

What is at Stake?

The threat of a large lawsuit puts the following at stake or at risk:

• Your Accumulated Assets
• Investments and other assets you have accumulated are at risk of “attachment
• ” following a judgment with a large liability claim. (Some assets have protection or exemptions such as retirement plans and your home).
• Your Future Earnings
• Future earnings are at risk because of the court’s ability to garnish  wages in order to satisfy a judgment. Depending on your state, garnishment may take up to 25% of your income.
• Inadvertent Damage
• A significant financial event like a liability judgment can have a ripple effect on those dependent upon your income. Kids getting ready for, or in college. Parents dependent on your care.
• Pending retirement is also at stake if assets or wages are at risk.

What are factors that make one more susceptible to a large liability loss:

There are a number of factors that make a household at greater risk for a large liability lawsuit.

• Owning Cars, Recreational Vehicles, or Boats
• Just the fact that you drive a car down the highway creates a significant risk of involvement in a large liability lawsuit. A moment of inattention or less than good judgment, and lives and serious injury are at stake. If you have inexperienced drivers in your household and that risk goes up exponentially.
• Recreational Vehicles such as ATVs, UTV’s, Jet Skis, Boats significantly increase the risk of injury and subsequently the risk of a large lawsuit.
• Inexperienced Operators
• Inexperienced operators exponentially increase the possibility of a catastrophic accident.
• Owning a Home - Or Homes - Or Land
• Owning any type of property increases the chances of a lawsuit due to an occurrence that occurs in or around the buildings and property.
• Rental Property
• Owning rental property increases liability exposure because of the lack of familial relationships with those who live there.
• Other Risk Factors
• Higher Income?
• Those with higher incomes are more attractive targets for large lawsuits simply because the potential financial payout is easier to collect.
• Pools? Trampolines?
• An 
• attractive nuisance  like pools and trampolines greatly increases the hazard and potential exposure to a lawsuit.
• Entertaining and Social Media
• Entertaining and Social Media increase the potential for losses such as host liquor liability and personal injury
• Board of Directors Participation
• Serving on a non-profit or charitable organization board can increase your personal exposure to a personal liability claim.

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You do not have to be a millionaire to be sued like one, but the greater assets you hold, the more attractive a target you are.

Many Auto and Home Insurance policies provide $250,000 to $500,000 of underlying liability coverage. Some will extend liability to $1,000,000. But what if, following an accident you are sued for much more than that?

A properly designed insurance program including the use of a Personal Umbrella provides an additional layer of liability coverage over your cars, recreational vehicles, residence, and rental property. The limits on a Personal Umbrella Liability policy can be set at $1,000,000 to $5,000,000 and beyond.

It’s quite easy to learn about your umbrella options. It’s as simple as requesting a quote from your agent or representative. When comparing the cost of such coverage to the financial protection it provides, a Personal Umbrella Liability policy may be your best insurance value.