Don’t Get Caught Without an Umbrella

Protect yourself and your assets with an umbrella policy.


Do YOU have enough liability coverage? By Tina Hernandez

You don’t have to be rich to be sued! The importance of having enough Liability insurance is essential.

We all want to save money on our auto insurance but are we really saving when we don’t have sufficient coverage? Not knowing the risks can be devastating and cost you way more in the long run.

So, what happens if your teenager is out driving on a rainy evening & pulls out in front of a brand new Mercedes totaling it and injuring the driver and their passenger? You purchased the minimum liability limits 25/50/25.
25,000 per person, 25,000 for property damage and a total of 50,000 per claim. That brand new Mercedes alone is well worth over 25,000, the injuries, loss of work, attorney fees ect. Where is the balance owed coming from?

It will have to come from you. Savings account, garnished wages, have to sell your home, cars and any other personal belongings that have value. Bankruptcy? This will become very stressful and financially exhausting.

I urge you to have this discussion with your Insurance Agent/Advisor when you purchase the policy and annually after, things change. Assets, drivers etc.

How much is enough? Do I need an Umbrella policy? What is an Umbrella policy?

An Umbrella policy is an additional policy/extra protection and peace of mind is how I like to think about it. It pays out after the limits of your liability has been exhausted. You can choose different amounts. The most common amount that I see is 1 million but I have also seen some out there for 5 million. The amount depends on your unique needs. Have that discussion with your advisor to avoid gaps in coverage and very expensive law suits.