If you have more than $1 million in personal assets, you need a personal umbrella liability policy to protect your home and investments. You’ve worked too hard and saved and invested too much to have it all swept away in a personal lawsuit. When you think of your total assets, take into consideration your home and properties, investments, retirement accounts and your vehicles and toys.
A personal umbrella is similar to a business umbrella. However, a business umbrella will not cover assets that are in your personal name, and a personal umbrella will not cover assets in a business name. Two separate policies are required in order to be properly protected. Dentists and physicians are particularly susceptible to being named personally in a lawsuit simply by the nature of professional liability. It is possible to be named both personally and professionally in a lawsuit.
If you have more than $1 million in personal assets, you need a personal umbrella liability policy to protect your home and investments.
A personal umbrella adds extra coverage above and beyond the liability limits on your homeowner’s policy. In a personal lawsuit situation, the liability limit on your homeowner’s policy would be used and exhausted first, and then the umbrella policy would begin to pick up the tab, up to its limit. Make sure that the combination of your homeowner’s policy liability limit and your umbrella policy liability limit are enough to protect your personal assets.