Question for the Money Doctors
Question submitted on Jun 10, 2014.
QuestionI have full coverage auto insurance. I have good coverage on my home as well. I was just informed about an umbrella policy. Is this a good idea to have, or just extra money going out that I could save?
Thank you for the question. An umbrella policy is for liability protection that goes above and beyond your home and auto policies. A typical umbrella policy may cover around $1,000,000 of liability on top of what you already have on your home and auto. I don't know what your coverage is on your home and auto. You can have "full coverage" but have very low liability limits. It is very important to have enough liability coverage, and typically this extra coverage doesn't cost very much extra. Many times an umbrella policy costs less than $200 per year, and it is money well spent for most clients.
I don't know your entire situation, so I cannot make a recommendation. However, I do recommend umbrella coverage for virtually all of my clients. If you are ever involved in a lawsuit, you will be glad that you have it.
I hope this helps.
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