Umbrella Insurance Policies - When to Consider Added Liability Protection

Comprehensive financial planning means that we look at much more than just your investment accounts.
Insurance review is also a big part of what we do, this means in addition to looking at life and disability insurance, we also evaluate the coverages on your home and auto policies.
And one gap in coverage that exists on all home and auto policies is that your liability protection is limited, usually to $300,000 or $500,000.
If you have a net worth above this amount of liability coverage on your home and auto insurance, you are at risk.
And that is where umbrella insurance comes in. This is a type of liability insurance that is purchased in addition to your home and auto that kicks in if an accident occurs that causes you to exhaust the liability coverage of your current home and auto policies.
This type of insurance is usually very affordable, perhaps a few hundred dollars per year in premium for each million dollars in coverage.
This insurance can protect you from a very wide variety of events, that make it useful for everyone from young families to those later in their retirement. It can protect you from liability as a result from a car accident, accidents with your kids and their friends around the house on a trampoline or swimming pool, dog bites, and even claims for bullying.
Calculating how much umbrella coverage to get can depend on a lot of variables. This is because states have very different laws on how different types of retirement accounts are protected in case of a lawsuit.
If you’re in California or Minnesota for example, you have very little protection at all and should probably buy coverage to protect your entire net worth.
For those in other states, and who have a majority of their savings in a 401(k) or other protected retirement account, your need may technically be a lower amount than your net worth.
If you are looking for a financial plan that not only helps you achieve your goals, but also insures your assets are protected please reach out to a comprehensive, fee-only financial planner today.
MusicBed SyncID: MB01M8GEG4LVVQC

[@msteeno7339]

Based on some of your other videos, I'm looking forward to this!

[@ArnoldMoteWealthManagement]

Thanks! Hope it will be helpful. But please reach out if we can be any further help