We all know the old saying ‘when it rains, it pours,’ but for many of us the saying ‘it is always sunnier after the rain’ feels more accurate. More often than not, bad times give way to good times and our past struggles become the roadblocks for future happiness. We shouldn’t be faulted for this outlook as the big picture evidence is in our favor, and thus we leave our umbrellas at home.
The more we zoom in on the bad times, the more we are able to see examples of rain leading to more rain and manageable problems becoming catastrophic ones. Take for example your average Fourth of July party hosted at your home with friends and neighbors gathering to celebrate. Everyone is enjoying the festivities until your next-door neighbor steps on an old portion of your deck and falls through it sustaining significant injuries. What was a beautiful day with friends became you and your neighbor’s worst nightmare. Not only has your neighbor sustained significant injuries, but you are now potentially liable, and your friendly neighbor may not have the same affection for you as they once did when they receive their medical bills and account for time lost at work.
The natural first reaction for the homeowner in this scenario is to lean on their homeowner’s insurance policy to cover the damages, but what happens if there is not enough coverage for this type of event? The medical bills, lost wages, and emotional trauma your neighbor sustained can lead to substantial legal settlements that can quickly exceed the coverage provided by your homeowner’s insurance.
This is where a good umbrella could help to shield you from a torrential downpour.
The umbrella in this scenario is actually umbrella insurance. Often overlooked and forgotten, umbrella insurance is a low cost and highly beneficial policy that provides additional coverage in excess of your home, renters, and auto policies. When a claim exceeds the limits of your primary insurance, the umbrella policy is utilized to make up the difference protecting you and your family.
The horrific and unpredictable scenarios in which umbrella insurance could be utilized are limitless and at a few hundred dollars a year per $1,000,000, it is hard to justify not considering the coverage.
Just like the stock market, life is not predictable. At Rolling Hills Advisors, we highly recommend you and your loved ones consider completing a full insurance review with us to ensure that you have the proper insurance coverage in place for that rainy day. In the event additional coverage is needed, we can get you in touch with a local insurance broker to assist.
This material is provided for informational and educational purposes only. It does not consider any individual or personal financial, legal, or tax circumstances. As such, the information contained herein is not intended and should not be construed as individualized advice or recommendation of any kind. Where specific advice is necessary or appropriate, individuals should contact their professional tax, legal, and investment advisors or other professionals regarding their circumstances and needs.
Any opinion expressed herein is subject to change without notice. The information provided herein is believed to be reliable, but we do not guarantee accuracy, timeliness, or completeness. It is provided “as is” without any express or implied warranties.
All benefits provided by insurance policies are subject to the financial strength and claims-paying ability of the issuing insurance company.
Investment Advisory Services are offered through Mariner Platform Solutions (MPS), an SEC Registered Investment Adviser. Rolling Hills Advisors and MPS are not affiliated entities. For additional information about MPS, including fees and services, please contact MPS or refer to Form ADV Part 2A, which is available on the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Registration of an investment adviser does not imply a certain level of skill or training. MPS does not provide legal or tax advice.
