Your home insurance and auto insurance have liability caps — usually $300K-$500K. If your attachable net worth exceeds that, you're exposed. Umbrella insurance is the cheapest coverage per dollar of protection in existence.
Here's a scenario that keeps insurance professionals up at night: A homeowner with $600,000 in home equity and $200,000 in savings causes a car accident that results in $900,000 in medical bills and a $1.2 million judgment. Their auto liability cap is $300,000. The remaining $900,000 comes out of their personal assets — home equity, savings, future wages. An umbrella policy that would have covered the entire judgment costs $150-$300 per year. That's roughly the cost of a streaming subscription — for protection against the kind of event that can wipe out everything you've built. If your attachable net worth exceeds $500,000, you almost certainly need umbrella insurance. And thanks to rising home values, millions of homeowners have crossed that threshold without realizing it.
Here's a scenario that keeps insurance professionals up at night: A homeowner with $600,000 in home equity and $200,000 in savings causes a car accident that results in $900,000 in medical bills and a $1.2 million judgment. Their auto liability cap is $300,000. The remaining $900,000 comes out of their personal assets — home equity, savings, future wages. An umbrella policy that would have covered the entire judgment costs $150-$300 per year. That's roughly the cost of a streaming subscription — for protection against the kind of event that can wipe out everything you've built. If your attachable net worth exceeds $500,000, you almost certainly need umbrella insurance. And thanks to rising home values, millions of homeowners have crossed that threshold without realizing it.
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