umbrella2A column in Daily Finance (www.dailyfinance.com) posed this scenario: “While its easy to assume that only a rich person could need that much insurance coverage, you’d be surprised at how important an umbrella policy can be for an average member of the middle class. For example, if you have a car insurance policy with liability coverage, you may think you have enough protection in case of an accident. But a lawsuit… could quickly exceed the $100,000 or $300,000 insurance payout.”

Are you prepared for that? Because everyone knows (or should know) that any damages beyond your policy limits are your responsibility. Maybe you thought your auto liability or homeowners liability was enough, but do you want to find out they weren’t after the fact? Your livelihood and that of your family is at stake.

In the same Daily Finance column, the author points out that “although 85 percent of umbrella insurance claims are related to car accidents, the policies offer protection against accidents that occur at your home, too — for example, in case someone falls down your stairs and sues you, or your balcony collapses during a party. Many people opt for an umbrella policy because they have a pool or a trampoline on their property and fear the consequences of a child getting injured.”

Be sure you have all the coverage you need. You have been vigilant in your insurance protection so far, so go the extra step. Talk to your insurance professional and be sure you are covered for all eventualities. Better now than in the future… when it’s too late.