Kathy

Hi, I’m Kathy Healy, managing partner of Healy Wealth Management. Today I’m here to answer an important question. Do you need umbrella insurance?

When we meet with clients, we always ask them if they have an umbrella policy. The need for you to protect your assets against bad things that might happen is very important. An umbrella policy goes over and above the limits to your property and casualty insurance, whether it’s your homeowner’s or car insurance.

An umbrella policy is going to protect you against things that are pretty unlikely but have a devastating financial impact. One example that I want to tell you about is this friend of mine. They had a dog, Elizabeth, a beautiful Saint Bernard. Elizabeth had six pedigree puppies and the couple wanted to put them up for sale. After a little bit, a couple came over to look at the puppies.

They posed as potential buyers, but after looking at the puppies, they said they weren’t interested. The next day, while my friends were at work, the couple came back. They scaled the six-foot fence in the backyard and went after one of the puppies. Mama dog was not having any of it and of course she attacked the guy. When my friends came home from work that day, there was a notice on their door.

They were required to quarantine their dog for 14 days and they were liable for all the medical expenses incurred by this guy who had come on their property without permission. An umbrella policy would have protected them in this situation. This sounds very farfetched, but it really happened. If you have umbrella policy, the insurance company will always have your back.

They’re going to provide lawyers. They’ll go up to the limits and then beyond if you have an umbrella policy. Another example is a friend whose daughter had a car accident. It was her fault and she was then sued by the injured party. The insurance company handled everything. It took over three years to finally settle, and the injured party received a settlement of $1 million, which was with the umbrella policy, and the couple didn’t have to pay out anything for that scenario.

Our mission at Healy Wealth Management is to improve the financial well-being of our clients by addressing your wants, your concerns, and your problems with wise advice and sound investing. See you in the next video!