The one I am speaking of will not protect me from the rain but it will protect me from a major financial storm. I had been meaning to look into purchasing an Umbrella policy for a long time. An Umbrella policy protects you above and beyond your homeowners and auto insurance policies if your are sued.

For example, you are involved in a major auto accident and seriously injury or kill someone. You get sued and the case goes to court. The judgement is for $800,000. You only have $300,000 liability coverage on your auto policy. Where does the other $500,000 come from? Guess what, anything you own could be taken away to settle the debt.

I thought I did not need an Umbrella policy because I did not have significant assets and I thought the policy would be really expensive. I did a little research online and learned that I should have the extra coverage; especially since I own a rental property. I called my insurance agent and he provided me a quick quote based on my existing policy relationships. The extra coverage would only cost about $200 a year. I did not need to think too long to make my decision. $200 for an extra One Million in coverage? I'll take it....


  1. Pinyo // September 18, 2007 at 12:00 AM  

    That's something I should look into also. I will make that part of my money makeover, with the baby coming an all. :-)

  2. I Am Fabulous!!! Deal With It... // September 18, 2007 at 12:00 PM  

    Oooh! great post!! I am going to look into this!!! Gonna link this post in my blog for the day. Great info...

  3. SingleGuyMoney // September 18, 2007 at 7:05 PM  

    Pinyo - Yeah, I agree especially since you have alot more assets that I do.
    I am fabulous - Thanks for visiting my blog and thanks for the link.