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An umbrella by another name…

This spring, some of us will grab an umbrella to protect ourselves during a mad dash in the rain to get to our car.  Others (primarily men, I’d say) will forego the umbrella and just do a manly jog to the car and get wet.  It just seems umbrellas aren’t convenient (or manly), they’re clumsy, and there’s never one around when you need one.

When WE talk about an Umbrella, we are typically referring to the Umbrella Policy.  This policy is much more convenient and if you have one, it’s there when you need it, 24X7.  The biggest challenge faced by the Umbrella Policy is its name.  If someone is asked if they want an “Umbrella Policy,” common reactions are “No.” or “Is it free?” or “Not right now.”  On the other hand, if someone is asked if they want extra lawsuit protection, the response is more likely to be “Tell me more about that!” or “Do I need that?”  If the insurance world renamed the Umbrella Policy to the “Extra Lawsuit Protection Policy” I think more people would own one!

Our Home Owner Policy and Auto Policy both have liability coverage (yet another term for “lawsuit protection”) to provide us with legal defense and to pay damages we are deemed responsible for in court.  We purchase liability coverage in various amounts, and when the damages we’re responsible for get higher than the liability limit we purchased, we suddenly find ourselves without legal defense and using our personal assets to hire another attorney and to pay the remaining awarded damages.  For most of us, about $15/month will provide us with an extra $1,000,000 of liability or lawsuit protection to keep our assets safe, warm, and dry.

When it comes to lawsuits we might face due to our negligence or just bad luck, having an umbrella policy can make a big difference.  Liability policies, umbrella policies, etc. aren’t fun and sexy.  Most people aren’t talking about them on Facebook, but they’re an incredibly important tool in protecting your financial future! Let’s start a conversation!  If you don’t have an umbrella policy, call your insurance agent today!