Before I dove into the world of insurance, I was like most people when it comes to coverages. I had no idea what coverages I had and no idea if it was enough. But, I did what most busy Americans do- made sure I had it and then forgot about it.
Many may argue that there are formulas you can use to determine the right amount of underlying liability on home and auto, for example. Me on the other hand? I believe liability coverage is the single most important part of why we have insurance. As a whole, consumers are extremely underinsured, especially with liability. Why? Because having proper liability coverage in place means protecting your largest asset (that’s your current and future potential income, by the way).
However, most people don’t know what they don’t know. And they certainly don’t know that if they run short on coverage in the event of a liable accident, the state of Iowa can step in and garnish up to 25% of their wages until paid off. See for yourself here.
That is, unless you have a personal umbrella policy. You’re spot on if you assumed I am going to tell you is what an umbrella policy can do for you. It is exactly how it sounds. It provides an additional layer of liability protection (typically in $1,000,000 increments) over your auto, home, secondary residence, ATV, RV, motorcycle and any other toys you may have. I consider it the grandfather of liability protection.
Anyone, anywhere and at any time could be in a situation where not having umbrella coverage would be detrimental. An Umbrella can step in when underlying liability coverage is used up. It can cover law suits, attorney costs and many other expenses related to your liable event. In my opinion, no one should ever take the risk of not having that extra liability protection, especially when it is extremely affordable. Want more deets? Click here.