Umbrella Insurance: The Extra Layer of Protection Many Families Overlook

You work hard to build your savings, your home, your retirement accounts and your other assets.

But what happens if you’re involved in a serious accident and someone holds you financially responsible for damages beyond the limits of your underlying insurance?

This is where umbrella liability coverage may be worth discussing.

What Is Umbrella Insurance?

Umbrella insurance provides an additional layer of liability protection above certain underlying insurance policies, subject to the policy’s terms and conditions.

Think of it as another layer between your assets and a major liability claim.

Who Might Consider Umbrella Coverage?

Umbrella insurance isn’t only for millionaires.

It may be worth discussing if you:

• Own a home

• Have significant savings or investments

• Own rental property

• Have teenage drivers

• Own recreational vehicles

• Own a swimming pool

• Host guests frequently

• Own a business

• Have substantial future income or assets

Teenage Drivers Can Increase Risk

Parents with teen drivers often have an increased concern about liability.

A young driver may make one poor decision that results in a serious accident.

While no insurance policy can prevent an accident, additional liability protection may help protect a family’s financial position if a serious claim occurs.

Rental Properties Can Also Increase Exposure

Landlords may have additional liability considerations because tenants and visitors are using their property.

That’s another reason property owners should consider their entire insurance picture rather than looking at each policy separately.

Insurance Is About More Than What You Own Today

One important thing to remember is that your financial exposure isn’t necessarily limited to the assets sitting in your bank account today.

Your future income and accumulated wealth can also matter when considering your overall risk.

Your Legacy Tip

The more you’ve built, the more important it becomes to think about protecting what you’ve built.

Umbrella coverage isn’t right for everyone, and the appropriate amount depends on your circumstances.

But it’s a conversation worth having with a knowledgeable insurance professional.

At Legacy Gate Partners, we believe good insurance planning starts by asking one simple question:

“What are we trying to protect?”

Then we build from there.