An umbrella insurance policy adds an extra layer of protection that you should have if you have significant assets to protect. The CKS Insurance Agency can help you make sure you have the coverage you need if you live in California.
If you have more than $300,000 in savings or net worth of over $1 million, you should probably have an umbrella policy. Any insurance policy you have has limits on the amount of liability it offers. An umbrella policy adds to those limits. If your car insurance policy has $300,000 liability limit, and you cause $400,000 in damage you would be on the hook for the additional $100,000.
It is also a good idea to have insurance for more than your net worth, or what you have in your 401K or savings. If you have $1 million in property and get an umbrella policy for that amount, and then have a judgment against you for $2 million, you will still be wiped out.
This could be especially important for retirees who have a lot of property or money they plan on using in retirement. A famous person, or a wealthy person in general, could also benefit as people are more likely to sue someone they believe has a lot of money. California's courts have given out some huge awards in lawsuits.
Umbrella policies cover all kinds of liability. It covers automobile accidents, if someone gets hurt on your property, as well as liable or slander issues. Most people never need to cash in on this kind of policy, and that is the reason it is not terribly expensive, but it could save you a lot of heartaches if you were to face losing everything you own.
Stop by the CKS Insurance Agency today, or give us a call, to make an appointment and discuss your insurance needs. We can help you determine if an umbrella policy is right for you and help you get a quote.