Daily Juice 083 – Umbrella excess liability coverage

Daily Juice 083 – Umbrella excess liability coverage

Let’s switch gears a talk about additional liability coverage that many of us should have, but don’t.

When we reviewed homeowners, renters, and auto policy: all of these coverages provide personal liability protection in case there is a bad accident and you are held liable.

For some of us, more coverage is needed because we have more assets to protect or we earn significant income. That’s where Umbrella excess liability comes in.

It provides protection in excess of what your primary policies cover and extends coverage in case of catastrophic losses.

For example, if you have an auto policy with $500,000 liability limit and you need to get additional coverage to protect your net worth, you will go for the $1,000,000 umbrella policy, since that is how these policies are sold. And now your overall coverage will be $1,500,0000.

Interesting fact: Umbrella policies began to be sold in 1949 and most accidents which use Umbrella are automobile related.

$1,000,000 cost on average about $150 per year.

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Anna Sergunina
Anna Sergunina

I'm Anna Sergunina, CFP®, President & CEO at MainStreet Financial Planning, Inc. My passion lies in serving others through financial planning, helping clients achieve their dreams like buying a home, saving for education, or retiring early. With over two decades in the industry and a CFP designation since 2009, I'm dedicated to excellence and continuous growth. Beyond work, I cherish moments with my son Liam, prioritize self-care, and engage in content creation for my Money Boss Parent Podcast and Money Library blog.

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