Who wants to insure their umbrella, anyway? That’s crazy.
Insuring your financial future – that’s something else entirely — that’s what an “umbrella policy” is designed to do both well and inexpensively.
The term “umbrella” is an insurance industry term intended to simplify things… However, the term alone, when not understood, can turn people off. Nobody likes to ask a question they think is stupid, so it’s easier not to ask “What’s an umbrella policy?” – and just say NO when someone asks if they want one!
Your auto and home policy include liability coverage – an umbrella policy will provide even more in addition to (or on top of) that in your home and auto policies. That’s why it’s called an “umbrella policy.”
Liability insurance pays damages and defense costs when someone sues you claiming you are liable (responsible) for damaging their belongings, causing bodily injury, mental duress, etc. The other party can go after what you have saved and even for what you’ll earn in the future.
Personal liability law suits have become much more common in recent years, and courts are awarding larger verdicts. For around $12 a month, in most cases, you can get an additional $1,000,000 in liability coverage. This isn’t much money to pay, considering the additional layer of security you’ve purchased to protect your present and future finances.