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A common misconception about umbrella insurance is that it costs too much. Of course your rates and terms will depend on your needs and your specific insurance company, but most businesses and many individuals can manage umbrella insurance cost.
If you think you can't afford umbrella insurance, take some time to consider the costs and likelihood of a lawsuit. Do you have more than $200,000 in assets that you need to protect? Are you a well-known and wealthy media personality? Do you operate a business? If you answered yes to any of these questions, then the umbrella insurance cost is a small price to pay for lawsuit protection.
Typically, most umbrella insurance costs a premium of about $200 to $300 a year. That is very low and generally affordable. But keep in mind that before you can use the umbrella insurance, you will need to meet a deductible-usually $300,000 or more. Careful planning and coordination between your umbrella insurance policy and your traditional liability coverage will take care of this deductible.
