When it rains, it pours! Do you have an umbrella to keep you dry?

Imagine saving up for years to build up a nest egg, only to liquidate it because you don’t have enough liability coverage on your home or auto insurance, if you’re at fault in a major accident. Most people assume that they have plenty of coverage when they purchase a home, renters, auto, or boat insurance policy. However, this is not always the case! The State of South Carolina can’t garnish your wages, nor can they seize your house, autos or any other hard assets. They can’t force you to liquidate your qualified retirement accounts such as a 401-K or a Traditional or Roth IRA. However if your insurance policy does not have enough liability coverage for the damages you have caused, you can be forced to cash in your non-qualified retirement accounts to pay the difference. If you don’t have retirement accounts that fall in this category, judgments for the damages can be placed on your home and auto, or any other hard assets you may own. Those would have to be settled in full before they can be sold. An umbrella insurance policy goes the extra mile in coverage for things you may not normally consider, but can take a serious hit to your savings and assets.

Umbrella insurance is a liability policy that gives you an additional amount of liability coverage, starting at $1 million. It would go above and beyond what your home, renters, auto or boat policies would normally cover you for, with most policies carrying a $0 deductible. One of the other great advantages of an umbrella policy is that they can cover attorney fees and other court costs that can result following an accident.

These policies are not just for those of high net worth, but also for middle income earners. They’re great for those who would not be able to rebuild their retirement if a catastrophic accident were to happen. Most umbrella policies can be increased if your net worth is higher. The coverage should be enough to cover your retirement and other assets, and for most people $1 million is enough coverage. Whether you own multiple properties, are married with teenagers who drive your cars, or single and rent an apartment, everyone should consider one.

If you have further questions about umbrella insurance, please call us today!