Pay to stay covered when other policies are drained
Most Americans have auto insurance, health insurance, dental insurance, homeowners or renters insurance, life insurance, maybe disability insurance.
It may make sense, especially if you have significant assets. Experts call this umbrella a savvy, inexpensive investment against a high-cost lawsuit that could result from anything from a car wreck to your job to a neighbor’s fall on your front steps.
Umbrella liability insurance is so dubbed because it acts like an umbrella, poised above a buyer’s auto and homeowners liability policies to provide extra protection. It kicks in when the liability limit is reached on the underlying coverage, paying for judgments against you as well as attorneys’ fees, all up to a stated limit.
“It’s not necessarily for everybody, but it’s not a bad investment,” said Sally Greenberg, executive director of the National Consumers League. “It does provide the consumer with some peace of mind that they wouldn’t have otherwise.”
That was the case with Pat Gillespie of Bay Village, Ohio, who got umbrella liability coverage last year after hearing about fellow teachers and athletic coaches who had it.
Etti Baranoff, associate professor of insurance and finance at Virginia Commonwealth University, considers it a basic building block for a sound financial plan.
The Insurance Information Institute calls it essential for almost anyone.
In that situation, some experts recommend instead increasing the liability level in basic homeowners and automobile policies.
Tags: Auto Insurance, Dental Insurance, executive director, health, health insurance, Information, insurance, liability, liability insurance, life insurance, policies
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