Sunny days don't last forever!
As an insurance professional I used to suggest very strongly that my clients get an umbrella policy. For those that aren't aware of the benefits of this coverage let me explain. Almost all of us have some form of automobile insurance coverage so that in case of an accident we are insured to cover the damages to ourselves and others that we may injure. In addition, we probably also have some type of homeowners policy to protect us from the perils of fire, wind, water, theft and liability in case someone is injured in your residence. It's been my experience that just having these basic policies leaves you at risk in the event of a major accidental event.
Most insurance companies offer a policy called an umbrella that provides coverage over and above your basic policies. Let's use an auto accident as an example: you probably have liability coverage of $100,000 but in the event of a serious accident the damages could amount to much, much, more. Perhaps you're being sued for the loss of a life and the plaintiff and their attorney are seeking $1,000,000. Your insurance company will offer to pay the $100,000 but you're on your own for the rest of the amount of $900,000.
An excellent way to protect yourself is to purchase an umbrella policy from your insurance agent for at least $1,000,000. I would highly recommend more depending on your net worth and I believe you can go as high as $5,000,000. The policies are relatively inexpensive and the minimum coverage should be under $300 for the annual premium. Getting at least some coverage on this type of policy is an insurance strategy that makes a lot of sense.
Here's the way I look at it. I've worked all of my life to build up some financial security for my future. In the event of a serious accident, and they do happen, I'm at risk of losing everything unless I have the proper insurance coverage. The most beautiful part of the policy is that the insurance company will provide your legal defense if they stand to lose $1,000,000. As a practical matter - you probably can't afford to hire the quality representation that they would provide at no cost to you.
My advice: don't leave your home or office today without giving your insurance agent a call to set up an umbrella policy to protect you and your family.
About the author: James "Fritz" Somborovich has owned several businesses and one of them was an Allstate Insurance office. His advice - don't make the mistake of being under insured. If you have any questions regarding insurance you should contact your local agent since laws vary from state to state. Comments can be submitted to: jsombo@Comcast.net