Do you need a financial umbrella?

Posted: Tuesday, Sep 09, 2008 - 02:15:19 pm PDT
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You read the papers. Life is filled with all kinds of natural and random misfortune. A man gets hit by a car on a rainy night. A worker falls off a ladder while fixing a roof. A woman burns herself at a backyard barbeque.

They’re all accidents, of course. But more often than you can imagine, someone is sued for more than they’re insured for and they face the loss of their savings, their home, and everything of value that they own.

Then there are other, more complicated situations. Two people have a relationship at work, one of them misreads some signals, and the result is a sexual harassment suit. Or two teenagers have a schoolyard argument, they take the spat online, and the result is a libel lawsuit.¬Ý

Once again, the unfortunate result is that ordinary people like you and me find themselves, much to their surprise, defending their cases in court. And it’s at this point that the other side of the tragedy begins – the financial side – which could result in complete and utter devastation.

Now all of this might sound like an improbable nightmare, and you might think that none of these situations could ever happen to you.¬Ý The point is not to worry, but to be smart. And we at Atchley Financial can show you how. Although we’re dedicated to helping you manage and grow your wealth, we’re equally committed to helping you protect and grow your wealth.

What should you do?

We recommend that you talk to a property and casualty agent as soon as possible about umbrella insurance. This excess liability coverage protects your assets, your savings, and even your home from financial judgments that exceed the limits of your auto and homeowners insurance policies.

How much coverage do you need and how much does it cost?

These questions depend entirely on your individual situation, including how many cars and homes you own. But, hypothetically, if you wanted a $1 million umbrella policy, it might cost $250 per year. A $5 million umbrella policy might cost $850 per year. Again, we suggest that you sit down with a property and casualty agent who can discuss your options and give you a personalized quote.

Why are we, a wealth management firm, advocating umbrella insurance so strongly?

Because we know how hard it is to save, invest, and grow your wealth. It would indeed be a tragedy to have you work so hard to attain financial security, only to see it ripped away because of an unexpected and unintentional accident.¬Ý

Which insurance agencies should you consider?

When it comes to picking a property and casualty agent, we advise you – as with everything in wealth management – to choose wisely. And if you need a few recommendations, please don’t hesitate to give us a call. Hopefully, you’ll never need excess liability insurance, but if a litigation storm cloud suddenly appears, you don’t want to be caught without your umbrella.

The Author

Les Atchley is the founder of Atchley Financial Group, a national wealth management firm headquartered in Coeur d’Alene, Idaho that specializes in retirement, investment, and estate planning. He and his team of experts help clients make intelligent decisions with their wealth in order to realize their goals and achieve financial independence. You can contact him directly at 208-664-1900 or learn more about the firm by visiting their website at AtchleyFinancial.com.