Well, it’s an easy test to see if you do. Just answer yes or no to the following questions:
Do you own a home?
Do you have kids that drive?
Do you have any assets, such as real estate, an investment portfolio or a retirement plan that you want to protect?
Do you sit on the board of a non-profit organization?
If you answered “yes” to any of these questions then you need an umbrella policy.
The purpose of an Umbrella Policy is to protect your assets and future earnings by establishing a layer of liability coverage, over and above your auto, homeowners, and boat policy in the case of a catastrophic loss. In addition to this, should your primary policy not cover the loss, your Umbrella Policy can respond directly, subject to a deductible of your choice. While it’s true that your auto, homeowners, or boat policy may provide as much as $500,000 in liability protection, unforeseen circumstances and the litigious nature of our society may find you liable for damages well into the millions of dollars.
Your dog bites a neighbor’s child;
A fire on your premises spreads and damages others’ properties;
Your teenager is responsible for an accident with their friends in the car;
You have an accident while abroad on vacation;
You are sued for invasion of privacy, libel or slander, or defamation of character.
All of the above are common losses that could put you in jeopardy of exhausting the liability coverage on your homeowners and/or auto policies and where a Personal Umbrella Policy could help protect you.
At Johnson & Strachan, we feel that the Personal Umbrella Policy is an important part of your personal risk management, and we have the expertise to tailor this coverage to your unique needs. The cost is small compared with the financial risk that you take by not having this coverage.
Please feel free to call or e-mail me if you have any questions about a personal umbrella.
Greg Safford, 703-352-2244, gsafford@jsinsurance.com