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Why Umbrella Insurance is Essential to Protect Your Assets

There’s no denying it – we live in a litigious society. Everywhere you look, there’s a story about someone being sued or a tragic accident occurring somewhere. The truth is, the more assets you have, the more likely you are to become another statistic. That is why umbrella insurance in Brentwood, CA is essential to have to protect your assets.

What is umbrella insurance?

An umbrella policy provides extra liability coverage beyond the limits of your home, auto, watercraft or other underlying policies once exhausted. Umbrella coverage has higher limits with a broader range of coverage, including claims involving bodily injury, property damage, and issues such as libel, slander, and defamation of character.

If you are sued or found liable for damages, an umbrella policy will not only pay the monetary damage costs but also attorney fees and other court expenses. Having a reliable umbrella policy in place can prevent another party from going after your assets if damages and legal costs exceed the limits of your regular policy.

How much should I get?

Not that employee retirement accounts and IRAs are usually protected under federal laws even if you don’t have umbrella coverage. Generally, your retirement account will remain safe even if a legal case were to bankrupt you. But as for the rest of your assets? Not so much.

Typical umbrella policies start at $1 million in coverage and are sold in million-dollar coverage increments. In general, you will want to ensure you have enough coverage to at least cover your net worth. Calculate the value of your retirement and other assets you have vs. your debt to determine your net worth. For most, $1 million in liability coverage will be enough. However, if your net worth is higher, consider increasing your coverage accordingly.

To secure the most reliable and most suitable umbrella insurance to protect your precious assets, talk to an insurance expert at Jack Stone Insurance Agency. Contact us today in Antioch, California for all of your insurance needs.

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