The team at Impel Wealth Management is always looking for additional ways that we can serve our clients with excellence and add value to our relationship. To that end, we would like to introduce you to our Professional Advisory Network.
Our team of CFP’s has spent a significant amount time over the last year, interviewing professional advisors that provide advice in ancillary service areas that could help you, our trusted friends and clients, but that we are not licensed or qualified to give you counsel.
We will be introducing you to several trusted partner firms over the course of the year. We would like to begin by introducing you to the McMichael Insurance agency. Gerald and Dennis McMichael have provided me with advice and guidance for over 20 years on my personal liability, auto, homeowners and business insurance. Today, Dennis is going to share his thoughts about a very important, and underutilized tool that can help you protect your assets, a personal umbrella policy.
If you have questions or would like more information on this important topic, please feel free to reach out to Dennis or Gerald. Their contact information is included below. Please be sure to let them know that you are a client of Impel Wealth Management. Alternatively, we would be more than happy to make an introduction. Please let us know how we can help.
A Personal Umbrella Policy is a critical, and necessary, part of any well-constructed program of insurance. To understand a Personal Umbrella’s importance, you need to understand how a Personal Umbrella works and what it actually does for you.
In short, a Personal Umbrella Policy provides protection for you and your household’s family members. It provides excess coverage in the event you do not have enough liability protection on your cars, home, motorcycle, boat, etc. Any judgments exceeding your limits of insurance would directly be your responsibility to pay. In turn, this could significantly impact the assets that you have worked so hard to build for your retirement goals.
However, you may purchase a Personal Umbrella Liability Policy that pays these excess damages up to the limit of your Umbrella Policy and helps protect your financial resources and net worth.
The big question is “how much you should carry?” On this point it is important to understand the forms of compensation the other party’s attorney will be seeking from you. They will likely attempt to recover actual damages, economic damages, and in some case punitive damages. They will seek recovery from the insurance you carry. Additionally, they may also attach your current assets and wages, and may also take into account your future earning potential.
The starting baseline for a Personal Umbrella Liability is $1,000,000 but can go as high as $5,000,000 or more if warranted. Premiums for this important coverage generally start around $250 and go up from there depending on a variety of factors, including the limit selected and the amount of underlying coverage we are protecting.
Do you have more questions? Please give us a call for more information and professional advice with regards to the limits and pricing. We would love to help you!
Dennis P. McMichael, CIC
The above mentioned professionals are not affiliated or registered with Cetera Advisor LLC or Impel Wealth Management. Any Information provided by entirely on behalf of Dennis P. McMichael of McMichael Insurance Agency.