In today’s litigious society, where lawsuits are increasingly common and damage awards can reach astronomical sums, protecting your assets is more critical than ever. This is where umbrella liability insurance comes into play. It acts as an additional layer of security, providing extra liability coverage beyond the limits of your existing homeowners, auto, or other primary insurance policies. This article will break down the essentials of umbrella liability insurance, why it’s important, who needs it, and how to get it.
Understanding Umbrella Liability Insurance
An umbrella insurance policy serves as a safeguard, kicking in when the liability limits of your underlying policies are exhausted. This means if you’re sued and found legally responsible for damages that exceed the coverage of your homeowners or auto insurance, your umbrella policy will cover the excess costs. This can include legal fees, medical expenses, and other damages you may be liable for, such as bodily injuries, property damage, and even personal injuries like libel or slander.
Why You Need Umbrella Insurance
Umbrella insurance is essential for several reasons. High-net-worth individuals, who are prime targets for lawsuits, benefit from the protection an umbrella policy offers for their wealth and future income against devastating financial losses. Those with risky hobbies or possessions, such as swimming pools, trampolines, or pets, face increased accident risks on their property, making umbrella coverage highly beneficial.
Landlords and rental property owners are also exposed to liability risks from tenants and visitors who might sue for injuries or damages. Parents of teenage drivers, who are statistically more likely to be involved in accidents, need this extra coverage as the liability from such incidents can exceed auto insurance limits. Lastly, public figures or individuals with high-profile careers gain additional protection against defamation lawsuits through an umbrella policy.
How Much Coverage Do You Need?
Umbrella policies typically offer coverage limits ranging from $1 million to $10 million. Determining the right amount of coverage depends on your total net worth, encompassing your properties, vehicles, investments, and future income potential. A good rule of thumb is to have enough coverage to protect your entire net worth, ensuring all your assets are shielded from potential liability claims. Consider your lifestyle, risks associated with your activities, and any high-value possessions. Consulting with an insurance professional can help you accurately assess your needs and choose the appropriate coverage level to provide comprehensive financial protection.
Qualifying for Umbrella Insurance
To qualify for an umbrella policy, insurers typically require specific underlying coverage limits to be in place, ensuring you have adequate primary coverage before the umbrella policy activates. Common requirements include a minimum liability coverage of $300,000 for homeowners insurance and $250,000 per person and $500,000 per accident for auto insurance.
Cost of Umbrella Insurance
One of the most appealing aspects of umbrella insurance is its affordability. Despite offering substantial additional coverage, premiums are relatively low. The average annual cost for an umbrella policy ranges from $383 to $1,578, depending on factors such as your location, the number of properties you own, and the driving records of those covered under your auto policy. Given the peace of mind and financial protection it provides, an umbrella policy is a cost-effective way to safeguard your assets.
Getting Started with Umbrella Insurance
If you’re considering umbrella insurance, start by assessing your net worth and identifying potential risks. Discuss your needs with an insurance agent to determine the appropriate coverage limits. Ensure your existing homeowners and auto policies meet the minimum requirements for umbrella insurance eligibility. When shopping for a policy, compare quotes from multiple insurers to find the best coverage at a competitive price. Remember, the cheapest policy isn’t always the best; consider the reputation of the insurer and the comprehensiveness of the coverage offered.
Conclusion
Umbrella liability insurance is a crucial component of a comprehensive risk management strategy. It provides an extra layer of protection that can save you from financial ruin in the event of a significant liability claim. Whether you have substantial assets, engage in riskier activities, or simply want to ensure your future financial security, an umbrella policy offers valuable peace of mind. Don’t wait until it’s too late – evaluate your needs and consider adding umbrella insurance to your portfolio today.
If you have any questions, give us a call, or read “Wealth on Purpose” by Bryan Ballentine.
Have a great weekend!
Sources: Located at the bottom of the article.
Golf Tip of the Week
This Clever And Completely Legal Grip Device Can Help You Swing More Consistently
Question: I’m a high-handicap player and was told by a friend that a “reminder grip” might help me. What is it, and what are the benefits?
Answer: Reminder grips have long been used by tour players. Ben Hogan, in fact, was known to place part of a wire hanger under his grips to promote a weak grip to avoid the hook he hated. Manufacturers also make them for the masses. Reminder grips feature a narrow rib on the underside of the grip that fits into the crease of the fingers to “remind” players to grip the club properly. This isn’t a training grip. In fact, it is USGA-approved for use in competition. Today these grips appear to be an underutilized tool. According to industry leader Golf Pride, about 15 percent of all grips are ribbed with the company’s ALIGN grip, accounting for about two-thirds of that 15 percent. The numbers are similar on the PGA Tour. That means a lot of golfers are missing out.
“The level of knowledge about reminder grips is fairly low,” says Greg Cavill, an engineer at Golf Pride. “The diehards know they exist, but even they are not fully aware of the benefits of repeatable hand placement. For the wider audience, it’s low, even with ALIGN, which has a red color on the reminder area. Most players just thought that was part of the cosmetic of the grip.”
That’s unfortunate. “More players should consider reminder grips, especially higher-handicappers,” says Woody Lashen, a Golf Digest 100 Best Clubfitter at Pete’s Golf in Mineola, N.Y. “Some of the best players in the world use them, and a lot of middle- to high-handicappers would really benefit from positioning their hands on the club the same way all the time.”
Reminder grips eliminate a variable. If you struggle getting your hands in a comfortable, consistent position, you should give them a try. Plus, the barrier to entry can be as low as one re-grip. Try re-gripping your driver with a reminder grip and see how you like it. You can always go back to what you had, and the cost is about the same as a beer after the round. OK, maybe two beers.
However, don’t assume the reminder should be placed in the six o’clock position. Knowledge of where the reminder needs to be lined up is critical, and if you have a strong or weak grip, you might want to move it off the neutral position. Remember, it’s not about forcing you to change the way you grip the club. It’s about creating consistent hand placement. That consistency can boost confidence, which can result in a more consistent and faster swing. No golfer needs a reminder to know that’s a good thing.
Tip adapted from golfdigest.comi
Recipe of the Week
July 4th Ice Cream Cake
12-14 Servings
Ingredients
Cake
- 1 1/2 qt. store-bought vanilla ice cream
- 2 c. red, white, and blue sprinkles, divided
- Unsalted butter, for pan
- 2 (15.25-oz.) boxes vanilla or white cake mix, plus ingredients called for on box
- Red and blue gel food coloring
Icing
- 2 tsp. unflavored gelatin
- 3 c. heavy whipping cream, cold
- 1 c. (115 g.) confectioners’ sugar
- 2 tsp. pure vanilla extract
- Red and blue gel food coloring
- Red, white, and blue sprinkles, for decorating
Instructions
Cake
- Line a 9″ cake pan with plastic wrap. Let ice cream soften in refrigerator, about 15 minutes.
- Transfer ice cream to a large bowl and fold in 1 cup sprinkles. Spread in an even layer in prepared pan. Freeze at least 2 hours or up to overnight.
- Meanwhile, butter 2 (9″) round pans. Line bottoms of pans with parchment. In a large bowl, prepare cake mix according to package directions. Divide cake batter between 2 large bowls. Gently fold in red food coloring into 1 bowl, then blue food coloring into second bowl until desired color is reached. Pour red batter into one prepared pan, then blue batter into the other.
- Bake cakes according to package directions. Let cool.
- Using a cake leveler or a serrated knife, level tops of cakes. Place blue cake on an 11″ cardboard cake round or other movable work surface (you need to be able to pick up the cake and take it in and out of the freezer). Invert ice cream disc onto cake, then remove plastic wrap. Top with red cake layer. Freeze until ready to use.
Frosting
- In a small heatproof bowl, whisk gelatin and 3 tablespoons cold water. Let solidify 5 minutes.
- Meanwhile, in a large (preferably chilled metal) bowl, using a handheld mixer on medium-high speed, beat cream, confectioners’ sugar, and vanilla until thickened but not yet reached soft peaks.
- Microwave gelatin until it just liquifies but isn’t yet hot, 5 to 10 seconds.
- With the mixer on low speed, drizzle gelatin into cream mixture. Slowly increase speed to medium-high, then continue to beat until stiff, fluffy peaks form.
- Transfer 1 1/2 cups frosting to a medium bowl. Fold in red gel food coloring until desired color is reached. Transfer 1 1/2 cups frosting to another medium bowl and repeat with blue gel food coloring. Cover and refrigerate until ready to use.
- Transfer 2 cups white frosting to a medium bowl or airtight container, cover, and refrigerate until ready to use (we’ll use the remaining white frosting in the next step).
- Working quickly and using an offset spatula, spread remaining white frosting in a thin layer over cake (this is the crumb coat; it’s okay if some cake crumbs are in the frosting). Freeze to set, about 30 minutes.
- Working quickly, completely coat cake with reserved 2 cups white frosting. Decorate with sprinkles as you like, gently pressing to adhere, then return cake to freezer.
- Fit 2 piping bags with star tips (I used an 828 open star piping tip) and fill with red and blue frosting. Pipe alternating red and blue rosettes on top of cake.
- Freeze until ready to serve. It’s best if allowed to freeze overnight.
Recipe adapted from Delish.comii
Travel Tip of the Week
This Gorgeous Island Was Just Named the Safest Place for a Road Trip in 2024
Summer vacation is finally here, and we couldn’t be happier for all the fun to come. And if you happen to still need a little vacation inspiration we suggest putting pedal to the metal for a road trip to remember. Not only does a road trip allow you to see as many sights along the way as possible, but it also makes it easy to change and shift your plans with the breeze. But, if you are going out on a road trip this season, it’s critical to stay safe. That begins by picking the right place to drive through, and the experts at Moneybarn Car Finance have a few ideas.
The company released its list of the safest countries for road tripping around the world, which it created by analyzing fuel and charging prices across the globe, road quality, the Google search volume for “road trip” in each destination, and traffic deaths per 100,000 people. After looking at all the data, the team named Iceland as the number one safest spot.
Iceland, it noted in its findings, “has the lowest road traffic death rate at two per 100,000 people, reflecting Iceland’s public awareness campaigns on safe driving practices and robust infrastructure to minimize accidents.” It also noted that there are more than 31,000 searches a year for “road trip in Iceland,” showing just how many people want to experience the specific kind of magic an Icelandic road trip can provide. And, as a bonus, it noted that its relatively low fuel and EV charging costs don’t hurt either.
Coming in a close second is Norway, which the company explained also has a low road traffic death rate of 2.1 per 100,000 people, and the nation is home to fantastic, high-quality roads that make for smooth driving. “Moreover, over 39,000 annual searches for road trips demonstrate a high interest from visitors,” it added.
Rounding out the top three is Switzerland, which also has a very low road traffic death rate of 2.2 per 100,000 people, low fuel and EV charging costs, and a very high road quality score of 6.3 out of 7. It was followed by Sweden, the United Kingdom, Japan, Denmark, Germany, Spain, and Finland, completing the top 10 safest spots.
But, if you happen to want to take a road trip through the U.S. this summer, that’s a great idea too, as the pros at Moneybarn Car Finance named the United States the country with the happiest drivers in a separate report. “There were over 72,000 Google searches for ‘USA road trip’ in the last year, and with over 6 million kilometers of road, there are plenty of road trip routes,” it added in that report.
Tip adapted from travelandleisure.comiii
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Sources:
What Is an Umbrella Insurance Policy?
Umbrella insurance: What it is & what it covers
How An Umbrella Insurance Policy Works And What It Covers
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Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.
This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.
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i https://www.golfdigest.com/story/this-completely-legal-grip-can-help-you-swing-consistently
ii https://www.delish.com/cooking/recipe-ideas/recipes/a53999/july-4th-ice-cream-cake-recipe/
iii https://www.travelandleisure.com/iceland-named-safest-country-for-road-tripping-8666157
