Have you thought about what would happen if you or a child of yours causes a car accident that results in serious injuries or even death of others? How would you pay for the treatment of someone who becomes injured in your home and claims negligence? What happens when they claim to have greatly suffered because of the injury? What if someone on your property hurts your dog and your dog then bites the person out of self-defense, and the individual sues you?
These are just some scenarios that highlight the importance of umbrella insurance, particularly for high net worth individuals.
Protection When You Need it Most
The wealthy must protect their wealth from costly lawsuits and related scenarios that threaten their assets. They often turn to professionals to put asset protection plans in place. A vital component of a solid asset protection plan is the umbrella insurance for high net worth living. In fact, for many people, the proper umbrella insurance for high net worth individuals may be all they really need.
An umbrella policy, which can also be referred to as an excess liability policy, takes effect when your other liability policies, such as your car insurance, hit their limit. For instance, if you were in an accident and are being sued for $1 million and your car insurance will only cover $300,000, your umbrella policy could potentially make up the difference. If you are not equipped with proper coverage and a legal judgment is greater than your standard liability coverage, you would have to come up with the difference and that usually means selling assets, most likely at a lower rate than you would expect.
Peace of Mind
The solution is really very simple. If you don’t have an umbrella policy, you are playing with fire and risking a lot. If you do have an umbrella policy, make sure you’re sufficiently covered. If coverage limits don’t adequately protect your vulnerable assets, then raise the coverage to the appropriate level. If you’re your unsure what that level should be, consult with a qualified advisor who can assist you in determining your specialized needs. There are a number of factors to consider, such as whether assets are already protected by permanently established trusts or life insurance. Figuring out the proper coverage limits may be the single best asset protection strategy for your overall wealth management plan.
About Provident Protection Plus
At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefit, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.