5. Umbrella Policy
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An umbrella policy is a type of insurance that includes an additional layer of security for you and your assets when you need coverage that surpasses the limits of your homeowners or auto insurance.
For instance, in case you’re to blame for a numerous vehicle accident, medical bills and property damages could quickly add up to more than your auto insurance will cover. If you’re sued for the difference, your savings, your home and even your future wages could be at stake!
You can protect yourself from a circumstance like this with a personal liability umbrella policy. Truth be told, an umbrella policy is highly recommended for anyone with a net worth of $500,000 or more.
For a few hundred dollars a year, an umbrella policy can increase your liability coverage from the standard $500,000 to $1.5 million.
