Repost from November 10, 2010:

Imagine this nightmare scenario:  You're on your way to work and get distracted by spilling some coffee.  To stop the agony of the burning coffee running down your leg, you reach into the backseat to grab a box of kleenex and at that exact moment you fail to see a yield sign and you smack into a couple on a motorcycle.  The young couple is severely injured and won't be able to work for a year.  They sue you and win $1 million settlements but your insurance policy only has a $100,000 liability limit, causing you to lose your entire life savings, your home and a significant portion of your future paychecks.

The good news is you can easily protect yourself and your family from this type of devastating event by purchasing Umbrella Insurance.  Umbrella policies protect you from liability issues that go beyond the liability limits of standard insurance policies, such as your homeowner’s insurance, car insurance, etc. This policy literally puts you under its umbrella so that when you exceed the liability coverage limits on an insurance line, you will still be protected.  Even better, Umbrella policies pay for the attorney fees, which by themselves can cause a family to go broke. 

Umbrella policies are very reasonably priced, for about $150 you can get $1 million of coverage.  In our litigious society, lawsuits are unfortunately quite common.  Some frivolous, some not.  The good news is you have an easy way to protect yourself.  While Solitude Canyon Investment Advisors doesn't sell insurance, I strongly urge you to contact your insurer today and add Umbrella coverage to your policy.  You never know when a storm might hit.