If you live in the Bay Area, have a good career, own a home and have some decent savings, chances are good that you are already a millionaire. Acquired wealth comes with added exposures and liabilities. You may have a second home, extra vehicles, toys like boats, motorcycles, ATVs, but when was the last time you really reviewed your insurance and personal risk management?
Let's look at the added liability exposure for a millionaire. The most common personal liability claims, other than auto related, are dog bites and golf related injuries. In either scenario injuries can add up quick. Consider the loss of income by the injured party and possible punitive damages and you will definitely run out of underlying liability coverage on your homeowners policy. Libel and slander are also becoming more of an issue for households. Social media opens liability exposures for you and your children via the web. It is now common for suits to start from bullying or slander via social media.
You don't have to be a celebrity or major league sports player to be a liability target. Unfortunately, there are opportunists out there that can come after you based on the car you drive, where you live or what they think you are worth. We advise our clients to add a personal umbrella to their coverage portfolio. Umbrellas are very inexpensive to add. Premiums are typically from $200 to $400per year for the first additional $1,000,000 in coverage. They tend to go down as the coverage goes up, so you many be able to add a $5,000,000 umbrella for about $1,500 per year. The likelihood of having a large claim is small, but for the cost and protection, it is extremely wise to add an umbrella. Protection from opportunists is priceless.
Loyalty is an amazing quality and most people are loyal to their insurance agents. However, there comes a point when you may outgrow your insurance agent. Your agent, especially if they are not independent with many company choices, may not be properly equipped to guide you through your exposures and insurance needs. You have worked very hard to get where you have to lose it because you were not adequately insured.
It's nice to be able to say that you are a millionaire, but it's even better to stay one. Consult with us on protecting your family and assets or let us know if you have any questions about personal umbrellas. We will be happy to provide a review of your exposures and help manage your risk like we have for our private clients for decades.