Umbrella Policies

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

dave_ramseyIf 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 Ramsey

Dave is the author of The New York Times best-selling book Financial Peace. He is also the host of the nationally syndicated The Dave Ramsey Show, and is a regular guest on television. All of his financial counseling is based on biblical truths. You can hear Dave from 9 a.m. to 11 a.m., weekdays online at www.daveramsey.com. Send your questions toaskdave@daveramsey.com. He resides with his wife Sharon and their three children, Denise, Rachel, and Daniel, in Nashville, Tennessee.

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