Umbrella Insurance: A Must-Have for High Net Worth Individuals

In this episode of the Long Game podcast, Thomas Kopelman and Jacob Turner dive into the often-overlooked topic of umbrella insurance coverage.

Aimed primarily at high net worth individuals and those on their way, the discussion highlights the critical importance of understanding this type of insurance and how it can serve as a safety net in the face of unforeseen circumstances.

Here are three key takeaways from this episode that you won't want to miss:

1. What is Umbrella Insurance and Why You Need It: Umbrella insurance acts as an additional layer of protection on top of your existing auto and homeowners insurance. It’s designed to cover you in the event of a major liability claim, which can be financially devastating. We discuss a real-life scenario where a car accident could lead to a $3 million payout, and how umbrella insurance can help mitigate that risk. If you have assets to protect, this coverage is essential!

2. Affordability vs. Value: Many people assume that comprehensive insurance coverage comes with a hefty price tag. However, we break down the costs and reveal that umbrella insurance can be surprisingly affordable—often ranging from $150 to $500 a year per million in coverage. When you consider the potential financial ruin from a single lawsuit, this investment is a no-brainer!

3. Understanding Exclusions and Risks: Not all umbrella policies are created equal. It’s vital to understand the nuances of your policy, including any exclusions that may apply. We share a cautionary tale about a client whose umbrella policy didn’t cover a dog bite incident because the breed was excluded. Always consult with your insurance professional to clarify what your policy covers and what it doesn’t.

In this episode, we aim to explain umbrella insurance and empower you with the knowledge to make informed decisions about your financial protection.