When it rains, you need an umbrella for protection. You also need umbrella insurance to protect you from above policy limits litigation. Find out more in this episode of the Finance Flash Go podcast!
Listen to the full episode and subscribe here!
What is umbrella insurance?
Umbrella insurance is insurance that covers any and every claim that could go against you and exceed your policy limits. It’s like an umbrella in that way.
So, let’s say that your car insurance has a bodily damage limit of $250,000 like mine. And you get in an accident and someone sues you for injuries for $500,000. If there was a successful judgement against me, my umbrella insurance would cover the extra $250,000. Same with a home-based suit that exceeds your limits. It’s actually kind of rare to have a suit against you, even a malpractice suit as a physician, that exceeds your policy limits. But umbrella insurance is so cheap that I recommend getting it. For instance, I have a $5 million umbrella policy for $395/year.
Note that some business umbrella insurance policies will cover above and beyond malpractice insurance. But a personal policy will not. I don't have a business umbrella because my malpractice through work is so comprehensive. But it is a possible consideration.
Related posts:
How to Find the Perfect Balance Between FIRE & YOLO
5 Easy Steps for Physicians Who Hate Personal Finance
Finance Flash Go! Episode #45: Small Cap vs. Mid Cap vs. Large Cap Stocks
My Stock Portfolio Is Better Than Your Financial Advisor’s
Stress Free Stock Market Investing Is Easier Than It Seems!
Important Money Lessons That I Learned From My Wife
Finance Flash Go! Episode #44: Understanding Growth vs. Value Stock
I really hope that you all enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected].
And please subscribe and give us a 5-star rating if you enjoy the podcast! It helps us continue our mission of helping all of us to achieve financial well-being!
