Umbrella Insurance: The New Status Symbol

What is umbrella insurance?

An umbrella insurance policy is simply an insurance policy that gives you extra liability coverage. It acts like an umbrella in that it can cover your home, your cars, your boat etc. and sits over top of all of these policies to protect you, like an umbrella. The protection is designed to provide additional liability coverage in the event your other policy has been exhausted.

Who needs an umbrella?

Anyone who owns a house or who has built up assets should have an umbrella policy. I know what you’re thinking, “doesn’t my home and car insurance policies already have their own liability coverage portion?” You bet they do, however the liability coverage isn’t always enough.

Do I Need Additional Liability Insurance?

Imagine this: you are driving your car and skid on black ice and hit another car badly injuring the passengers in that car. They will sue you to ensure they can get around the clock care, loss of income, pain and suffering etc. If the injuries amount to more than your liability coverage of $1,000,000 or $2,000,000 for example, you could lose your house, car, all of your assets. The courts can also garnish your future income. It’s possible you could never own a home again. Having additional liability insurance can protect you and your assets in the event the lawsuit exceeds what your currently carry.

Why wouldn’t I have an umbrella?

Good question. To get an umbrella policy with an extra $3,000,000 in coverage is approximately $250 per year or $20.83 per month. If you have something to protect, it is a small price to pay. I know it can be hard to imagine a lawsuit over $1,000,000 happening to you, but believe us when we say they do! And to be honest they are happening more and more frequently. If you are sued an umbrella policy will be the best investment you ever made.

Is it really a status symbol to have an umbrella policy?

Yes. The next time you go to a fancy cocktail party, walk up to the first person you meet and say: “Reginald and I balked at the idea of course, but really, who doesn’t have an umbrella policy these days?” And then throw your head back, laugh and walk away.

If it wasn’t a status symbol do you really think Rihanna would have recorded a song about it?