Estate Planning

That Little Umbrella Insurance Policy Isn't So Little.

By Jennifer Sawday

Here's an idea for you for the New Year. Check to see if you have an umbrella liability insurance policy. And if you don't have one, get one!

It's been said over and over again, but you cannot have too much insurance. And an umbrella insurance policy can be a life saver and a great way to protect your assets. All of the financial gurus can't say enough about it... check out this New York Times article or from About.com.

Ask yourself about your existing insurance coverages. If you own a home and have your homeowners and vehicle policies with the same insurer, contact your insurer today about adding on an umbrella insurance policy. I have insurance with State Farm and a million dollar add on umbrella policy costs me an annual premium $248. It's a bargain.

You don't want to be involved in a judgment action against you for where your existing insurance policy wasn't enough to cover the judgment amount owed based on something you did wrong like caused an automobile accident. For example, if your automobile coverage was only $100,000 with no other liability coverage and yet have substantial equity in your house, your home could be seized and sold to satisfy the judgment. Of course this is a simplistic view, but it does happen and having additional insurance will protect you.

To summarize, a personal liability umbrella insurance policy can give you additional liability protection at a very reasonable fee. Also, by having such coverage, your premiums on your other policies may go down thereby giving you more insurance coverage at the same total cost.  Contact your insurance agent today. You can also contact your estate planning attorney to see if they have referrals to insurance agents that you can talk to as well.

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Estate Planning, Probate and Trusts involve complex areas of law. Individual circumstances must be considered before any advice can be given.  The general information above is not to be construed as legal advice, which can only be given after consideration of the unique facts of each matter. Please seek the advice or counsel of your attorney, financial advisor or CPA as it may be appropriate.

Full post as published by Estate Planning Practice Blog on January 09, 2009 (boomark / email).