Umbrella Insurance for All?

In the interest of full disclosure here I am an Insurance Agent in Delaware.  When I talk to clients about umbrella policies their first reaction, and probably rightly so, is I am trying to sell them something.  Which is true but the real question is my motive.  A true insurance guy or gal should be doing one thing very well - protecting your stuff.

So my questions for you are...

1.  Do you own anything
2.  Do you drive
3.  Do you work
4.  Do you think we live in a litigious world

So if these answers are all yes, my point is made relatively easily.  I understand those who tell me they only own a home, in which they are underwater anyway, and have no real assets.  What about your salary?  That is a huge asset for most folks and in some homes, if it were to be garnished by 20% each year would have a tremendous effect right?

Let me pose a scenario - you are driving alone, absolutely not texting or talking on your cell phone and that precious device slides to the floor, you reach down to grab for it and a deer runs out in front of the vehicle in front of you who then slams on her brakes and you slam into the rear of the vehicle.  Lets say you have 300,000 worth of liability coverage....which is relatively common or should be at this point.  Imagine this 24 year old woman is now disabled for the foreseeable future.  Any idea how her lawyer will calculate the amount you are going to have to pay...

Her current annual salary + each working year for the next 38 years give or take including inflation.  Lets assume its 30,000  x 38 years = 1.1 Million dollars give or take.

Here's another good one - now take everything you have that is able to be liquidated legally, once exhausted, take that number and take 20% of your salary until the remainder is paid. 

Yes, I know, a little gloom and doom.  This actually happened and does more often then you would imagine.  So, in my opinion, yes - Umbrella's for all.

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