How can insurance protect your Assets?

Posted by Alan Finkel on October 25th, 2022

There are strategies for protecting your assets regardless of your net worth. A well-crafted asset protection plan will consider the assets and their monetary value. That is, it will evaluate the types of assets you have and your risks. For example, if you own and drive a car and have a standard liability insurance policy, that is only one layer of protection. As a result, if you are at fault in an accident that exceeds your coverage limits (a common occurrence), everything you own is at risk. The same is true for business liability, homeownership, and any other type of risk. As such, asset protection is proactive wealth protection.

We recently spoke with a doctor with a million malpractice policy. What is the issue? Unfortunately for his patient, his nurse botched a procedure, resulting in severe brain damage. And unfortunately for him, the patient's family has filed a million lawsuit against him. As you are well aware, no matter how much insurance you have, you can always be sued for more. So, personal umbrella insurance is the best way to ensure adequate protection.

What Exactly Is Umbrella Insurance?

Umbrella insurance is a policy that covers any gaps in your homeowners or auto insurance policies that could expose your assets to seizure. It also provides additional liability protection if you are sued, and your other policies' liability coverage is exhausted. Personal umbrella insurance protects your assets up to the amount of coverage you purchase rather than forcing you to turn over assets if you are liable for damages.

Who Should Get Personal Umbrella Insurance?

Personal insurance, including umbrella insurance, is recommended for anyone who wishes to protect their assets and wealth. Even if your only asset is your home, this type of insurance can protect it in case of a liability lawsuit. Those with larger assets may be particularly vulnerable. People today are often more willing to file lawsuits against those they perceive to be wealthy and able to pay for damages.

Given this, it is recommended that anyone with wealth who wishes to be protected must obtain enough personal umbrella insurance to cover all assets to avoid asset seizure. These supplemental policies are typically written to provide coverage ranging from million to million and can be purchased from most agencies that write homeowners and auto insurance.

Whether your assets are real estate, investment accounts, or even expensive antique jewelry, you do not want them seized to pay a liability suit judgment if your insurance coverage is insufficient. Purchase umbrella insurance to protect your assets above and beyond the coverage provided by other policies.

Personal umbrella insurance provides you with the peace of mind that if you are ever found to be financially responsible for the damages caused to another party, your wealth and personal assets will protect from seizure!

Please don't wait until it's too late to consider asset protection. An Asset Protection Lawyer in Waco, TX, has helped people find legal ways to protect themselves from creditor claims, estate planning, lawsuits, and wills & trust. When you hire a lawyer and follow the rules, you can expect to get the most out of asset protection.