Umbrella Insurance

If you don't already have an umbrella insurance policy, you should consider getting an umbrella insurance policy. If you already have an insurance policy, it is usually not costly to add an umbrella insurance policy on top of your existing insurance policy. Umbrella insurance policy or Umbrella liability insurance policy is a great asset protection strategy that could save you from bankruptcy. Consider using umbrella insurance policy for asset protection.

Umbrella insurance policy explanation

Below is an example of an umbrella insurance policy at work. Say you have a $1 million umbrella insurance policy. You injured someone in an accident.

Without umbrella insurance policy:

If you don't have an umbrella insurance policy or umbrella auto insurance coverage, and you only have $100,000 worth of insurance. If the medical bills of the insured family are $500,000. Also, they could get another $1 million dollars if they sue you. You only have $100,000 in insurance but you have a lot of real estate and money.

The suing party's lawyers immediately tie up all your property, saying you are about to be sued so you cannot spend anything. The suing party's lawyers lock up your checking accounts while the lawsuit is in progress. You will find yourself not able to use your bank accounts.

With umbrella insurance policy

On the other hand, if you have a $1 million dollars umbrella insurance policy and you injured someone in an accident. You are facing a lawsuit and the plaintiffs want a lot of money. With an umbrella insurance policy, your umbrella insurance policy company will call the plaintiffs and say you have a $1 million dollars umbrella insurance policy. The umbrella insurance policy company says it will write the plaintiffs a $1 million dollars check.

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