The question is no longer if you need an umbrella, it’s how big of one to buy

An umbrella insurance policy is extra liability insurance on top of your normal car and home policies. Typically $1 million or $2 million, they add that extra layer of protection for you and your assets.

It is easy to assume that only someone with a lot of money would need that much insurance coverage, but you’d be surprised at how important and inexpensive that policy can be for a member of the middle class.  For two cars and a home the rates can be around $150-$200 dollars; that means for pennies a day you can buy extra coverage that could save your financial future.

You might think to yourself: I don’t have a million dollars to lose, I don’t need an umbrella. Unfortunately, if you are sued by someone who falls down the stairs at your home, you can be sued for more than just what you have in the bank. Your retirement funds, investments, savings, and even future earnings are at risk. In Minnesota they can garnish 25% of your income to start paying for a claim!

The question used to be “Do you need an umbrella insurance policy?” and now it has become “How big of an umbrella do you need; $1, $2, $3, $4, or $5 million?”

Read the link here for some cases where an umbrella saved the day.

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