Asset Protection 101

Posts Tagged ‘liability insurance policy’

Why should plaintiffs take the offer from your umbrella insurance policy issuer?

There are many benefits in the plaintiffs taking the offers of $1 million dollars from the umbrella liability insurance policy issuer. First of all, they will not have to pay the lawyer 20% – 50% of the $1 million dollars. Their lawyer could recommend that they reject the umbrella insurance policy issuer’s offer and still sue you but it will take 3-4 years in the courts.

If they win in court, they could get $2 million dollars or more but if is risky and after all the court costs and waiting for years, they may end up with less. Plus, getting the $1 million dollars immediately is a motivation for most people. Under these umbrella insurance policy circumstances they would probably settle out of court. That’s why umbrella insurance policy offers asset protection and could save you from losing everything. Umbrella insurance policy is one of the easiest asset protection strategies that you should use to protect your assets should anything happens to you or your family.

Why do I need umbrella insurance policy?

Before you get an umbrella insurance policy, you should examine all your insurance policies, particularly coverage exceptions. You should examine your car insurance policies, real estate insurance policies, land policies, etc.

Property insurance policies, for example, usually don’t cover nuclear war, terrorism, and mismanagement of city water. If the city floods and water ruins your house, your insurance probably does not cover it. Knowing the extent of your insurance policy coverage and exceptions is key.

Auto insurance, for example, may not cover you for any criminal charges. If you fall asleep at the wheel of your car and cause a wreck or your teenager does, and someone dies, you may be charged with manslaughter and your car insurance would not pay for criminal defense. This, therefore, is a big gap in your asset protection plan and you need asset protection strategies to fill in the gap.