Umbrella Policy BlueStone Advisors Lombard

Why Every Homeowner Needs an Umbrella

What Is An Umbrella Policy? 

As a homeowner, one of the most serious and expensive claims you can face is a liability claim. The liability portion of your homeowners and auto policies are designed to protect you in the event that you or a member of your household is legally responsible for causing injury or damage to a third party. Think of Aunt Betty slipping and falling on your icy front walk; Johnny from next door breaking an arm on your trampoline; or your teenage driver injuring someone in an auto accident that is deemed their fault.  These policies are also referred to as Excess Liability or Umbrella policies.

Do I Need An Umbrella Policy?  

If you own a home and/or have financial assets that are worth protecting, securing a personal liability policy (also called an umbrella) does not cost very much for the amount of protection it provides. A million dollars of protection can usually be secured for as little as a couple of hundred dollars a year. And remember – you don’t need to be a millionaire to be sued like one!

How Much Do I Need?  

While it is always best to consult with your financial planner, think of your liability coverage as protecting your net worth in the case of a catastrophic claim. If a lawsuit puts your wealth at risk, the last thing you want to worry about is running out of insurance.

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