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Dave Says: Is an Umbrella Insurance Policy Right for You?

Dave Says: Is an Umbrella Insurance Policy Right for You?

Dear Dave,

I follow you on Twitter, and I was wondering if you recommend buying an umbrella policy. If so, how much?

Dean

Dear Dean,

If you’ve started to win with money and build some wealth, an umbrella policy is some of the cheapest insurance you can buy. It’s just about the biggest bang for your buck.

Here’s an example. In most states, you can get an extra $1 million in liability coverage added to your car insurance and homeowners insurance as an umbrella policy for as little as $200 a year.  

There’s no problem if you don’t have any money. But if you’ve got some cash, and you bump into somebody, it’s a really good thing to have that extra umbrella insurance policy in liability situations!

—Dave 

* Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership and Smart Money Smart Kids. The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.