Personal umbrella policies are growing in popularity. In the past, only wealthy individuals and families purchased this coverage. Today, middle-income families also may procure this policy for protection in our society’s increasingly litigious climate. As the tendency to sue for damages rises and awards granted by the courts grow, the personal umbrella policy is increasingly seen as an insurance necessity, rather than a luxury. It is especially attractive because of its relatively low cost.
In particular, you should consider purchasing a personal umbrella policy if you have certain
characteristics or engage in certain activities, including the following.
● Your total assets are greater than your underlying liability limits.
● You are financially responsible for the actions of a young, inexperienced driver.
● You live in an exclusive and affluent neighborhood.
● You have a high profile career or high income.
● You frequently host guests on your property.
● Your residence includes a swimming pool.
● You own waterfront property, a farm, or a ranch.
● You own watercraft or aircraft.
● You own numerous rental properties.
● You engage in extensive international travel for pleasure.
Copyright 2008, International Risk Management Institute, Inc.