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Shielding Your Assets in 2024 | A Guide to Liability Insurance and Umbrella Policies

Written by Richard A. Widick | Jun 24, 2024 11:30:00 AM

In 2024, as lawsuits become more common, knowing how to protect your money and property with the right insurance is crucial. Here is an easy-to-understand breakdown of how liability insurance and umbrella policies can help you keep your hard-earned assets safe.

What is Liability Insurance?

Think of liability insurance as a basic shield. It helps cover costs if you accidentally damage someone else’s property or cause an injury. This kind of insurance is usually part of your homeowner’s, auto, or renter’s insurance.

For example:

  • If you cause a car accident, your car insurance helps pay for the other person’s medical bills and car repairs.
  • If someone trips and falls over a loose step on your porch, your homeowner’s insurance helps pay for their medical bills and legal costs should they decide to sue.

Why Consider an Umbrella Policy?

Standard insurance has limits; it won’t cover everything. That’s where an umbrella policy comes in. It starts where your regular insurance stops. If you’re sued for a large amount, an umbrella policy helps cover those extra costs, so your savings and home aren't at risk.

Imagine you’re in a serious car accident, and the costs are way higher than your regular insurance covers. An umbrella policy would help pay what’s left, so you don’t have to dig into your own pocket.

 Why These Insurances Matter:

Protect Your Stuff: These policies help keep your savings and property safe if you’re ever sued.

  • Less Worry About Risks: They let you focus on your goals without worrying about losing everything to a lawsuit.
  • Help with Legal Bills: If you end up in court, these policies help pay for your lawyer, so you don’t have to pay all those fees yourself.
  • Peace of Mind: Having good coverage means you can plan for the future without fear of unexpected financial troubles.

Looking Ahead

Talk to your CPS advisor about your insurance once a year to make sure it still fits your needs. As life changes, your coverage might need to change, too.

Chat with us about how well you’re protected and whether there are any new options you should consider. Keeping your insurance up-to-date means you can go after your financial goals without worry.