Top 5 Reasons You Should Get Under an Umbrella (Insurance Policy)

Tony Grahn
Written on March 19, 2018

Everyone should consider purchasing a personal umbrella policy. Umbrella insurance won’t protect you from getting wet, but can certainly protect you from the storms of life!

For most people, an umbrella is purchased to provide higher liability limits above their current auto or homeowners/renters policy.  An umbrella is purchased in increments of $1,000,000, and generally costs around $200 per million annually. The average cost for an umbrella policy is $25 a month. 

Why should I consider an Umbrella?

Your future is uncertain. 

Although a catastrophic loss doesn’t happen to most people, and maybe only once in a lifetime – what if it did happen to you?  While some of us are more cautious than others, we all take risks at some time or other.

Some risks you can’t – or shouldn’t – retain yourself.

One reason we buy insurance is because of the potential for a loss. We might not have the ability, or desire, to pay for it out of our own pocket. Although most injuries are minor, there is always the potential for a fatal, or a significant injury.  Medical treatment followed by months of therapy, especially with an organ transplant, can cost hundreds of thousands of dollars.  An injured person could have to be transported via helivac to a nearby hospital if they were injured. This can further escalate expenses.

To better protect your assets.

Attorneys have often been heard to say “Buy enough protection to protect your assets.”  Purchasing a $1,000,000 or $2,000,000 limit could be the simplest way to do this.  A catastrophic loss could bring financial ruin, including the wiping out of one’s retirement.  Years of hard work and investing, could be gone in an instant!

Increased exposure to loss.

A younger driver, who doesn’t have the experience of a 55-year old, can cause serious injury or fatality to others.  Lifestyles can make you a greater candidate for loss than another person.  For instance, some enjoy high impact activities.  Fast speed sports and more are prone to causing serious injury or death to others. Some of these sports include jet skis, motorcycles, sports cars, ATV’s, etc.

A larger target

While you might not be an attorney, a business owner, or someone prominent in society, just the perception of wealth (nice car, the neighborhood you live in, your age, your job, who you hang around) can cause others to assume you have more to sue for.

Hopefully you now see why you should consider purchasing a personal umbrella policy.