The NBA draft always brings excitement, and seeing Cooper Flagg go as the #1 pick is no exception. As he steps into his new role, he’s not just taking on a new career—he’s also facing significant life changes, including moving to a new state, switching auto insurance, securing coverage for his new home, and protecting his growing assets.
While most of us don’t share Cooper’s superstar salary, the need for additional liability protection applies to anyone with a steady income or high earning potential. That’s where an umbrella insurance policy comes into play.
What Is Umbrella Insurance?
Umbrella insurance is a type of extra liability coverage that goes beyond the limits of your standard auto or homeowner’s insurance policies. It acts as a financial safety net, covering legal fees, medical bills, and other liabilities if you’re found at fault in a major incident.
For example, if you’re involved in a severe car accident and the damages exceed the liability limits on your auto insurance policy, an umbrella policy steps in to cover the excess amount.
Why High-Income Earners Should Consider Umbrella Insurance
Even if your bank account doesn’t rival Cooper Flagg’s, umbrella insurance is a smart choice for anyone who earns a solid income. Here’s why:
- Protection Against Wage Garnishment
Attorneys know how to spot high-income earners, and if you’re at fault in a major accident, they may pursue your future wages. Umbrella insurance protects you by covering damages that exceed your primary policy limits, ensuring your income and assets are shielded. - Affordable Coverage for Significant Risks
Many people are surprised to learn that a $1 million umbrella policy can cost as little as $150-$300 per year. You can even opt for higher limits—$2 million, $5 million, or more—depending on your needs and level of risk. - Covers Gaps in Your Policies
Umbrella insurance doesn’t just extend liability coverage; it also provides protection in scenarios that may not be covered by your standard policies. This includes libel, slander, or incidents involving your rental properties.
How Much Umbrella Insurance Do You Need?
The right coverage amount depends on your assets, income, and future earning potential. A $1 million policy is a great starting point, but high earners may want to consider higher limits for added peace of mind.
Why Now Is the Time to Act
Life changes—like moving to a new state, starting a new job, or earning a significant promotion—are the perfect opportunities to reassess your insurance needs. Don’t wait until it’s too late to protect yourself from financial devastation.
Conclusion
Umbrella insurance is more than just a policy—it’s peace of mind. Whether you’re a high-income earner just starting to build your wealth or you’ve already accumulated significant assets, this affordable coverage can protect your future earnings and provide financial security when you need it most.
