Protect: Do you have Enough Umbrella Insurance?

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Umbrella liability coverage supplements other liability policies such as auto and homeowners. It is designed to kick in when the coverage on those policies has been exhausted. The main purpose is to protect your assets from unforeseeable accidents and missteps. When thinking about assets, there are obvious things that come to mind: investment accounts, home, investment property, cars, etc. But keep in mind, even your future income can be viewed as an asset. An umbrella policy can protect current assets as well as future income for all members of your household.

In assessing the level of coverage you need, you need to consider the total value of all assets to be protected, the potential loss of future income, and your household’s personal liability risk factors. Do you own a swimming pool or trampoline? Do you often host large social gatherings at your home? What is your daily commute to work like? Do you participate in any hobbies or sports where you could potentially injure others? Is there an inexperienced driver in your household? Do you own rental properties? Do you employ household staff? Are you a well-known public figure?

According to the Insurance Information Institute, average umbrella insurance policies costs between $150 and $400 per year for a $1 million policy, another $75 for the next million, and another $50 for every million after that.

With its high coverage limit, umbrella insurance generally offers very good value for the cost. You have worked hard to accumulate your assets and all of us could be a potential subject of a lawsuit. If you are interested in a specific discussion about the appropriate amount of umbrella insurance coverage for you and your family, do not hesitate to reach out to us.

Disclosures:

This report is distributed with the understanding that it is not rendering accounting, legal or tax advice. Please consult your legal or tax advisor concerning such matters. No assurance can be given that the investment objectives described herein will be achieved and investment results may vary substantially on a quarterly, annual or other periodic basis. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information.

The information presented herein is for informational purposes only and is not intended as an offer to sell or the solicitation of an offer to purchase a security. Past performance is not indicative of future results.

Gryphon Financial Partners shall not in any way be liable for claims and make no expressed or implied representations or warranties as to their accuracy or completeness or for statements or errors contained in or omissions from them. This was created for informational purposes only. Gryphon Financial Partners, LLC is an Investment Adviser.

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