The closer a person comes to retirement age, the more important umbrella coverage becomes because, without it, a settlement or lawsuit could wipe out the person’s retirement savings or second business launch money. Securum LLC in Bellevue, WA provides this guide on navigating umbrella coverage so you know why you need it.
Umbrella Insurance: What You Need To Know
You can’t buy umbrella insurance by itself. You need to already own a primary policy, such as auto or home insurance, to purchase this secondary insurance.
Umbrella insurance provides liability coverage over the amount in your primary policy. For example, your primary policy carries the maximum amount of liability insurance possible. In this example, let’s say that equals half a million dollars.
When you purchase an umbrella policy, you can add any amount of liability coverage to that figure up to the maximum allowed by the underwriters. Many people choose a million-dollar policy because the coverage provides significant protection, and the policy only costs a few dollars per month.
Why You Need Umbrella Insurance More as You Age
As you age, you take on more responsibilities, which means you probably serve on a board of directors or coach a sport your child plays, etc. This also means you host fundraisers at your home. That increases your liability for accidents, but the umbrella policy balances it out.
If you don’t have umbrella insurance and an accident does occur at your home when you’re 25, you have 35 years to make up for the money you had to spend out of your savings and retirement package to pay off the settlement. If an accident occurs at your home when you’re 60, you have 10 years to make up for the money you had to spend out of your savings and retirement package.
Contact Us Today
Buying an umbrella policy provides your investments and your retirement savings protection. It pays for the settlement, the court costs, and the attorney fees once the primary policy has paid out all of its liability maximum. This ensures you never have to pay out of pocket. Securum LLC serving Bellevue, WA and surrounding areas can help you get this policy so you can protect your investments. Call us today.
