Rob West

Rainy Day Umbrella Insurance

December 5, 2020
00:00 0

They say when it rains, it pours. That’s fine if the lawn needs watering, but not so much if someone sues you. Could you use an umbrella insurance policy? Many homeowners fail to take advantage of coverage that protects their assets from catastrophic lawsuits. Today, financial planner and teacher Rob West has the info you need on this overlooked form of insurance. Then it’s your calls at 800-525-7000. 


•          An umbrella policy gives you extra liability coverage for you and your family, beyond what you have with your homeowner’s and auto insurance policies.

•          And does everyone need it? Maybe not. But more people than you might expect. If you’ve been working hard to build up assets, in your retirement fund, and the equity in your home, it’s possible you could reach the million dollar mark someday, even if you’re not there yet. And a civil judgement could be against future earnings, so that’s something to consider. 

•          A lot of folks might think those assets are protected from lawsuits, but there are limitations. In many states, your home is protected from lawsuits and creditors, but not all. For example, New Jersey and Pennsylvania have no homestead protection.

•          Also, most employer sponsored retirement plans, like a 401k, have immunity from lawsuits and creditors under the Employee Retirement Income Security Act, or ERISA. But non-ERISA plans, like traditional or Roth IRAs, don’t have the same level of protection. So those are both reasons to consider an umbrella policy.

•          Umbrella policies are quite reasonable. For up to $1 million in coverage, you’ll probably pay $150 to $300 a year. You might even find it cheaper if you have an independent insurance agent shop around for you.

•          There’s no deductible with an umbrella insurance policy. Of course, you would pay the deductible for your homeowner’s or auto insurance policy, but then the umbrella policy kicks in and pays all the rest.


Here are some questions we answered from our callers on today’s program:


•           My husband and I have savings in an account that we were planning on using on a home. We are now considering going into the mission field within the next 5 years. Should we wait to purchase a home?

•           I opened a Roth IRA. How do taxes work with these?

•           I am making some improvements on my home. One creditor offers a loan with no payments for 5 years. How can they do this? It is too good to be true?

•           If you can save a percent, should you refinance? I only have 8 years left to pay it off. 

•           I am a schoolteacher and I am planning my retirement. Is having a 403B the best plan for me for retirement? 

•           My husband and I purchased a timeshare 30 years ago. Is there a cost effective way to get out of this?


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About MoneyWise

MoneyWise is a daily radio ministry of MoneyWise Media. Hosted by Rob West, the program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

About Rob West

Rob West is the host of the nationally syndicated radio programs MoneyWise and The MoneyWise Minute heard on more than 900 radio outlets each day. Rob also serves as the President of Kingdom Advisors, an international community of financial professionals who are specialists in delivering biblically wise financial advice. Rob serves as primary spokesperson for the organization and gives leadership to organizational strategy.

A radio veteran, Rob previously co-hosted a live, call-in, financial radio program with his father from 1998 through 2008 at WAFG, Fort Lauderdale, FL. Rob has dedicated his professional career to working at the intersection of faith and finance having led a successful faith-based financial services firm, serving as the host of several radio programs on a biblical approach to finance, and speaking frequently on the topic. Rob and his wife, Julie, live in Marietta, GA with their four children.


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