Asset Protection 101

Posts Tagged ‘umbrella insurance’

Why wasn’t I told about umbrella insurance coverage?

When you buy your car insurance policy, your car insurance agent probably told you that $300,000 is standard auto coverage and that is how much insurance you have. But if you wipe out a family or put them in intensive care for three months, the $300,000 will be gone in no time. You should call your insurance agent and ask him or her about a $1 million dollars umbrella insurance policy.

What does an umbrella insurance policy cover and how much does an umbrella insurance policy cost?

A $1 million dollars umbrella liability insurance policy will most likely cover your driving and may cover up to five rental properties among other things. An umbrella insurance policy is a good insurance policy which will probably cost $150-$250 a year. You should also verify what the umbrella auto insurance coverage is for your information in understanding how umbrella insurance coverage works.

Popular umbrella insurance policies

Umbrella insurance medical malpractice and umbrella insurance coverage for physicians have been popular because physicians face lawsuits daily. Personal finance umbrella insurance is also becoming more popular as one of the asset protection strategies. There are many personal umbrella liability insurance and personal umbrella insurance providers to choose from. Ask your insurance agent about personal umbrella liability insurance. You may want to inquire about umbrella insurance policy from various personal umbrella insurance providers to compare umbrella insurance coverage and rates for umbrella insurance policy.

Insurance with umbrella logo

Insurance with umbrella logo is not the same as umbrella insurance. A few insurance providers have some kind of umbrella logo. For example, Travelers has a red umbrella logo. Primerica, part of CitiGroup also has an umbrella logo. Be careful to distinguish insurance with umbrella logo and the real umbrella insurance.

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.

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.