Making It Personal

Brian has a good amount of money and wonders if he needs to get a personal umbrella insurance policy to cover himself.

QUESTION: Brian wants to know what Dave thinks of getting a personal umbrella insurance policy. He has about $100,000 in assets and Dave if he thinks it’s good. Dave does, as long as certain conditions are met.

ANSWER: It’s one of the best buys in all of insurance and I highly recommend it if you have enough assets to where you are concerned about being a target. If you are sued for a negligent accident, they can go above your insurance. But you can carry a half million dollar policy on your car and your homeowners; if your net worth is only $100,000, then that’s all you need right now.

If you want to buy one, you can. But I would wait until you have a net worth of at least $500,000. For a $1 million rider on your policy, it will cost you about $180. It’s all right to have it, but right now in your case, it may be a little bit of overkill. Nowhere else in the insurance world can you get such a bang for your buck as with umbrella insurance.