Do You Need a Personal Umbrella Policy?

One night, your son borrows your car to go out with friends. While speeding down a road, he loses control—killing one passenger and seriously injuring two others. What would happen to your finances if you’re sued by the families of the victims?

Or what if your dog is provoked by a stranger on your property and bites the person in self-defense—but the person still sues you?

These and similar scenarios are both horrific and all too possible. The good news is that, generally, we see many affluent individuals and families facing these types of questions and risks head-on by taking steps to help ensure their wealth is protected from lawsuits resulting from scenarios like these.

Unfortunately, there’s one aspect of a strong wealth protection plan that people too often underuse or even overlook entirely: an umbrella policy.

If you have significant assets, an umbrella policy may make good sense. Here’s a look at why that is.

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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.