Who Doesn't Want To Be Covered On A Rainy Day?

S.F. Ehrlich Associates |

February 15, 2019

A client recently emailed to suggest that we remind all our clients of the importance of umbrella insurance. It was a good suggestion.

Regardless of your age, if you own any assets that you want to preserve, adding an umbrella policy helps to protect your assets. The more assets you have, the larger the umbrella policy you should obtain. (Umbrella policies often start at $1 million of coverage.)  Many experts suggest one should have enough insurance to at least cover your net worth.

Costs for umbrella policies are relatively low considering the size of the coverage (a $1 million umbrella policy may only cost a few hundred dollars). In essence, the umbrella policy kicks in after other insurance coverage is exhausted, such as when you hit the limit of the liability coverage on your auto policy.

In addition to helping to pay for any judgments that may be awarded against you as a result of a lawsuit, an umbrella policy may also help to pay legal fees or even protect you if a judgment against you includes future earnings. If you have potentially more exposure, such as from owning a rental property, or driving passengers as part of a charitable endeavor, your insurance agent may advise that you buy over and above your net worth.) 

The insurance company that writes your homeowner’s coverage can usually write an umbrella policy for the lowest premium. After all, isn’t a good night’s sleep worth a few hundred dollars a year?

 

 

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by S.F. Ehrlich Associates, Inc. (“SFEA”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from SFEA.  To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  SFEA is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice.  A copy of SFEA’s current written disclosure Brochure discussing our advisory services and fees is available upon request. If you are a SFEA client, please remember to contact SFEA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing, evaluating, or revising our previous recommendations and/or services.