We are bombarded with messages or ads about Umbrella Coverages. Everyone should have an Umbrella Coverage because you do need it in today’s litigious society. But do we really need it? The answer might surprise you. Most of us have a basic understanding of what an Umbrella Policy is and most of us might think we don’t really need it. After all, it is for the people with wealth or assets who need that kind of protection. The reality is, it is not just for the wealthy or people with assets.
“As long as you can earn a livelihood, you should have an umbrella liability policy,”says Mitch Freedman, a CPA and personal financial specialist in Westlake Village, Cal.
In this article in Kiplinger, they go on to explain why you should have an Umbrella Policy. Even if you don’t have assets or much money, you may want to consider getting an Umbrella Policy. In the article, “Do you need Umbrella Insurance? What it is and how can it help you.” they talk about Restrictions, Minimum Underlying Insurance, How much Coverage, and more.
“When you have no assets, you may be obligated to pay off the damages awarded with your future earnings! If you are a student studying for your degree, or even if you expect to eventually be promoted and work your way up to a high paying position, your future earnings can be targeted.”
This article talks about how Umbrella Coverage is needed even for those without assets and don’t make much money, because if you are sued there another asset that almost all of us have but don’t consider in situations like this – wages. Wage garnishment, whether current and future income, can be withheld in order to pay out damages.
“Umbrella insurance is necessary for everyone, including people who don’t have assets.”
Contact us at Scott Richards Insurance to discuss Umbrellas Policies and make sure you are protected now and in the future.