June 11, 2023 • 16 mins
In this episode Jerry talks about the need to carry an umbrella policy, He describes what it is and what its used for.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
UNKNOWN (00:00):
Bye.
SPEAKER_01 (00:44):
Hey, hello, hello,
SPEAKER_00 (00:53):
hello, and welcome to the Pink Money Podcast, where
We talk about all things relatedto money from a gay perspective,
and I'm your host, JerryWilliams.
And, you know, I was in thefinancial services arena, you
know, for a long, long time,over 20 some odd years, you
know, had all kinds of licensesand certificates and, you know,
(01:14):
education.
You know, my master's is inpersonal financial planning.
But, you know, really, when yousee a financial advisor, often
what they want to do is, youknow, help you grow your wealth
and protect what you have.
And those two goals combined arekind of serves as a basis of
really in terms of an analysisof what an advisor is going to
(01:39):
do is really take a realstructured look at your overall
situation from the ground up.
And when you're talking about,you know, growing your wealth,
you know, there's all sorts ofways to do that.
And that just depends, again, onwhat your financial goals are,
chiefly, let's say, likeretirement.
So when you're talking aboutprotect your wealth, then
there's also all kinds of waysto do that.
(02:01):
But as we know, there's allsorts of ways to lose your
money, and for it to be takenfrom you, and or, you know, of
course, you could give it away.
So there's different strategiesfor all that.
But recently, I was talkingtalking with someone who told me
that their daughter had a friendwho came over to their community
(02:26):
pool and her friend brought herdog and her dog bit someone on
the face ouch so I'm not toosure about all the circumstances
regarding that.
I don't know if the dog was onthe leash, off the leash,
whether they could have pets,they couldn't have pets, all the
circumstances surrounding it.
But what made me think is inthat particular situation, I
(02:50):
hope that the daughter's parentshave an umbrella policy.
And the reason I say that isbecause an umbrella policy will
help kick in when the limits ofyour personal protection policy,
like your homeowners, has beenexhausted.
So an umbrella policy is goodbecause it provides protection
(03:15):
that exceeds those limits on,let's say, your homeowners,
whatever the liability is.
So if you have a lot to lose,then you have a lot to protect,
and therein, that's the reasonfor an umbrella policy.
So an umbrella policy, typicallyyou're going to buy it from the
(03:35):
same insurance company that youhave your homeowners and auto
and that kind of stuff with.
Some companies will make youhave all your protection, like
your homeowners and your auto,all under the same roof before
they give you an umbrellapolicy.
Some may not, just reallydepends, but here nor there.
(03:56):
you really want to explorehaving an umbrella policy when
your net worth is getting upthere to half million, million
beyond.
So does that mean if I don'thave a half million dollars of
assets that I don't need one?
No, that doesn't mean that.
(04:17):
It just means that in general,you know, a lot of companies may
just ask you what your net worthis.
So they have a good idea ofwhether they're going to extend
you an opportunity to buy one ornot.
Now, I've seen some umbrellapolicies that go down to like a
half million dollars.
Is it common?
Probably not.
(04:37):
But generally, a million istypically where they start.
And sometimes then they go up inmillion dollar increments.
But if you could buy one, let'ssay at a half million, I
certainly would just like and aflood insurance policy.
If you're in a flood-prone zone,you may or may not be required
to buy one or have one, butcertainly isn't it useful in
(05:01):
today's world where flooding isbecoming more and more
commonplace?
It certainly happens all overthe place.
We know what Florida's like.
Anywhere on the coastal waters,again, it's a big problem.
That aside, an umbrella policy,again, can be useful when you
have something like anattractive nuisance on your
property, meaning something thatattracts young children who may
(05:27):
not have the wherewithal and theexperience to recognize that
this is a dangerous, potentiallydangerous situation.
device like let's say atrampoline or a swimming pool it
could also mean you know thatyou get sued for defamation it
can be useful for that orslander but yet many times like
(05:50):
i said in this circumstancewhere let's say your dog bites
someone depending on theseverity of this dog bite i
could easily see you gettingsued you know by those parents
because of that dog bite so It'salways a good idea, in my
opinion, to carry one.
They're relatively inexpensive.
I would probably suspect youcould get one, a million
(06:13):
dollars, I would say, I don'tknow, from three to maybe 500 a
year, just guessing.
I don't really know what theprices are these days.
It's been a long time since Isold one.
But the point is that if youhave a lot to lose, you have a
lot to protect, and you reallywant to explore getting an
umbrella policy, Just like ifyou have a lot of valuable
(06:35):
jewelry and, you know, thingslike your bullion, your gold, et
cetera, you know, then it's areally good idea to carry a
ride-along jewelry insurancepolicy.
Because if you own expensivewatches, you have a really
expensive...
engagement ring or wedding ringor what have you those can
(06:58):
easily get lost right they caneasily easily be misplaced it
can go down the drain you dropit in the swimming pool on and
on and on and on and on so it'sa really good idea to insure
those things because once youlose them they're very expensive
to replace and the insurance candefinitely be helpful in that
(07:20):
circumstance so For a little bitof money, you get a lot of
coverage, and if and when it'sneeded, it's very helpful.
I mean, I know that I lost myoriginal college ring, and when
I bought it, I just so happenedto take out the insurance policy
that ran along with it.
(07:42):
So it was several years laterwhen I finally decided, you
know, I probably should replacethat thing.
Even though I don't wear it verymuch, but it's nice to have, you
know, all that.
My mom was always asking me, whydon't you wear your ring?
And I'm like, oh, well, youknow, I lost it.
Anyway, come to find out, when Icalled, it was very nearly set
(08:03):
to expire.
And I was able to get my goldring replaced for only$500.
Really, really cheap.
And then the girl told me evenafter that, she said, we don't
even sell this anymore.
So, hey, it just happened towork out for me.
But in that circumstance, again,insurance is really nice to have
(08:23):
when it's really useful and youneed it to fall back on.
Just like you carry insurancefor your automobile, the
liability, right?
If you get into some, Godforbid, horrible situation and,
again, the injuries that youcaused exceeded your auto
insurance policy, your umbrellapolicy will kick in.
(08:45):
So So...
It's a really good idea to carryone, in my opinion, and have one
that is at least, let's say, amillion dollars.
But again, that depends on yournet worth and it depends on your
circumstances and what theinsurance company will actually
cover you for.
And most likely, they're goingto start asking you questions
(09:06):
about why you want one, whatkind of things are on your
property that might beproblematic.
You know, do you have a sandpit?
Do you have old vehicles onyour...
property?
Do you run some type ofbusiness?
Do you, you know, have a swingset that's unprotected?
Who knows, right?
There can be all sorts ofsituations.
(09:27):
I know when I was a kid, we hadsome neighbors several doors
down that had a trampoline thatthey put in their swimming pool
when it was empty.
And we went over there all thetime and jumped.
And I can't tell you the numberof kids that got injured when
they bounced off that thing andthen bounced onto the concrete.
It just happened.
(09:48):
I don't remember anyone gettingsued, but those were way back in
the days.
Now today, you'd probably stubyour toe and get sued.
It's just those kind ofsituations you hear about these
days.
Anyway, I think that an umbrellapolicy, like I said, is a really
good reason to have one.
There's all sorts ofcircumstances that could warrant
(10:09):
it.
And when you're going to buyone, Then that's also probably
the same.
At the same time, the insurancecompany will probably look at
your overall policy with you,your policies with you, your
auto insurance, your homeowners.
If you have renters, right, youshould carry renters insurance
(10:32):
because I can't tell you howmany circumstances where renters
really need a renters policy.
I'm even going to throw this outtoo.
I remember when years and yearsago I was living in an
apartment.
I came home one day and the doorwas busted in.
And I walked in, took a lookaround.
I saw all kinds of things pulledout from all the shelves and
(10:55):
closets.
And it was a complete mess.
I called the police.
They came over.
They took a look around.
They took reports.
They took...
you know, fingerprints, etc, allthat good stuff.
In fact, I remember one copasking me, he said, you know, do
you happen to have any serialnumbers for your stereo
equipment and things that weretook?
And I said, Yeah, you know, Ido.
(11:17):
And, you know, at that time, Iremember when I don't even know
if they do this anymore.
But if you buy at the time, youwould buy your electronic
equipment, let's say your stereoreceiver.
And usually there was a like acard came with it, and the card
would have, like, mail this inregistration that contained the
serial number on it.
Something I didn't do at thattime, but I had intended to do
(11:40):
it, and I had slipped all thosecards underneath the electronics
with the intention of, hey, youknow, at least I know where they
are when I get ready to do it.
Well, lo and behold, I never didit.
The unit got stolen, and there,laying on the table, was the
registration cards with theserial numbers on them.
So it was incredibly lucky forme.
(12:02):
And then I remember when thedetective gave me a call one
time and he said, hey, you knowwhat?
We found your VCR.
I said, oh, really?
Where was it?
He said it was at a pawn shop.
He said, by the way, do you haveanybody in your family who's a
midget?
I don't even know if that's theright word to use anymore.
(12:23):
So I apologize if that's not theright word.
Short person, I guess maybe itis.
I'm not sure.
Sorry.
But anyway, I said, no, I don't.
I have an uncle who's a jockey.
That's about the closest.
I think my mom's only five feettall.
But anyway, I said, no.
I said, why?
He said, that's the person whowas ponying it, and you just
happen to have the same lastname as you.
(12:44):
I was kind of floored, and thatwas funny.
Never got that back.
I don't even know what happenedto the guy either.
But hey, you know, c'est la vie.
Nevertheless...
It's just a good idea to carrythe right amount of insurance
for the right reasons.
And usually, again, when yourunderlying policies are
(13:05):
reviewed, they're going to makeyou max them out to the fullest
extent before they kick in thatumbrella policy because it's
going to dovetail off of thosetwo, your auto and your
homeowners.
And that just, again, dependswhatever the liability ends up
being.
So that's...
pretty much it for me in thatregard.
(13:26):
Give it some thought, contactyour insurance professional,
have that discussion with him orher or the company and, you
know, look around, shop around.
If you do have your financialadvisor, I'm pretty sure that he
or she will discuss that withyou.
If your advisor, planner,whomever is only going over your
(13:48):
investments, you may want toreconsider that relationship
because they should be taking alook at your whole enchilada.
And again, all your insuranceneeds should go into that
review.
And also speaking of that, yourlife insurance as well, which
makes me want to, go into that alittle bit more.
(14:10):
I know I discussed it before.
There's some other circumstancesI'm thinking of that make me
want to talk about it again, butI'll save that for another day.
Anyway, that's pretty much itfor me.
I hope you're having a greatday, and I will talk at you
later.
Tell
SPEAKER_01 (14:27):
me
SPEAKER_00 (14:28):
why!
UNKNOWN (14:31):
Tell me why!
Bye.
SPEAKER_01 (00:44):
Hey, hello, hello,
SPEAKER_00 (00:53):
hello, and welcome to the Pink Money Podcast, where
We talk about all things relatedto money from a gay perspective,
and I'm your host, JerryWilliams.
And, you know, I was in thefinancial services arena, you
know, for a long, long time,over 20 some odd years, you
know, had all kinds of licensesand certificates and, you know,
(01:14):
education.
You know, my master's is inpersonal financial planning.
But, you know, really, when yousee a financial advisor, often
what they want to do is, youknow, help you grow your wealth
and protect what you have.
And those two goals combined arekind of serves as a basis of
really in terms of an analysisof what an advisor is going to
(01:39):
do is really take a realstructured look at your overall
situation from the ground up.
And when you're talking about,you know, growing your wealth,
you know, there's all sorts ofways to do that.
And that just depends, again, onwhat your financial goals are,
chiefly, let's say, likeretirement.
So when you're talking aboutprotect your wealth, then
there's also all kinds of waysto do that.
(02:01):
But as we know, there's allsorts of ways to lose your
money, and for it to be takenfrom you, and or, you know, of
course, you could give it away.
So there's different strategiesfor all that.
But recently, I was talkingtalking with someone who told me
that their daughter had a friendwho came over to their community
(02:26):
pool and her friend brought herdog and her dog bit someone on
the face ouch so I'm not toosure about all the circumstances
regarding that.
I don't know if the dog was onthe leash, off the leash,
whether they could have pets,they couldn't have pets, all the
circumstances surrounding it.
But what made me think is inthat particular situation, I
(02:50):
hope that the daughter's parentshave an umbrella policy.
And the reason I say that isbecause an umbrella policy will
help kick in when the limits ofyour personal protection policy,
like your homeowners, has beenexhausted.
So an umbrella policy is goodbecause it provides protection
(03:15):
that exceeds those limits on,let's say, your homeowners,
whatever the liability is.
So if you have a lot to lose,then you have a lot to protect,
and therein, that's the reasonfor an umbrella policy.
So an umbrella policy, typicallyyou're going to buy it from the
(03:35):
same insurance company that youhave your homeowners and auto
and that kind of stuff with.
Some companies will make youhave all your protection, like
your homeowners and your auto,all under the same roof before
they give you an umbrellapolicy.
Some may not, just reallydepends, but here nor there.
(03:56):
you really want to explorehaving an umbrella policy when
your net worth is getting upthere to half million, million
beyond.
So does that mean if I don'thave a half million dollars of
assets that I don't need one?
No, that doesn't mean that.
(04:17):
It just means that in general,you know, a lot of companies may
just ask you what your net worthis.
So they have a good idea ofwhether they're going to extend
you an opportunity to buy one ornot.
Now, I've seen some umbrellapolicies that go down to like a
half million dollars.
Is it common?
Probably not.
(04:37):
But generally, a million istypically where they start.
And sometimes then they go up inmillion dollar increments.
But if you could buy one, let'ssay at a half million, I
certainly would just like and aflood insurance policy.
If you're in a flood-prone zone,you may or may not be required
to buy one or have one, butcertainly isn't it useful in
(05:01):
today's world where flooding isbecoming more and more
commonplace?
It certainly happens all overthe place.
We know what Florida's like.
Anywhere on the coastal waters,again, it's a big problem.
That aside, an umbrella policy,again, can be useful when you
have something like anattractive nuisance on your
property, meaning something thatattracts young children who may
(05:27):
not have the wherewithal and theexperience to recognize that
this is a dangerous, potentiallydangerous situation.
device like let's say atrampoline or a swimming pool it
could also mean you know thatyou get sued for defamation it
can be useful for that orslander but yet many times like
(05:50):
i said in this circumstancewhere let's say your dog bites
someone depending on theseverity of this dog bite i
could easily see you gettingsued you know by those parents
because of that dog bite so It'salways a good idea, in my
opinion, to carry one.
They're relatively inexpensive.
I would probably suspect youcould get one, a million
(06:13):
dollars, I would say, I don'tknow, from three to maybe 500 a
year, just guessing.
I don't really know what theprices are these days.
It's been a long time since Isold one.
But the point is that if youhave a lot to lose, you have a
lot to protect, and you reallywant to explore getting an
umbrella policy, Just like ifyou have a lot of valuable
(06:35):
jewelry and, you know, thingslike your bullion, your gold, et
cetera, you know, then it's areally good idea to carry a
ride-along jewelry insurancepolicy.
Because if you own expensivewatches, you have a really
expensive...
engagement ring or wedding ringor what have you those can
(06:58):
easily get lost right they caneasily easily be misplaced it
can go down the drain you dropit in the swimming pool on and
on and on and on and on so it'sa really good idea to insure
those things because once youlose them they're very expensive
to replace and the insurance candefinitely be helpful in that
(07:20):
circumstance so For a little bitof money, you get a lot of
coverage, and if and when it'sneeded, it's very helpful.
I mean, I know that I lost myoriginal college ring, and when
I bought it, I just so happenedto take out the insurance policy
that ran along with it.
(07:42):
So it was several years laterwhen I finally decided, you
know, I probably should replacethat thing.
Even though I don't wear it verymuch, but it's nice to have, you
know, all that.
My mom was always asking me, whydon't you wear your ring?
And I'm like, oh, well, youknow, I lost it.
Anyway, come to find out, when Icalled, it was very nearly set
(08:03):
to expire.
And I was able to get my goldring replaced for only$500.
Really, really cheap.
And then the girl told me evenafter that, she said, we don't
even sell this anymore.
So, hey, it just happened towork out for me.
But in that circumstance, again,insurance is really nice to have
(08:23):
when it's really useful and youneed it to fall back on.
Just like you carry insurancefor your automobile, the
liability, right?
If you get into some, Godforbid, horrible situation and,
again, the injuries that youcaused exceeded your auto
insurance policy, your umbrellapolicy will kick in.
(08:45):
So So...
It's a really good idea to carryone, in my opinion, and have one
that is at least, let's say, amillion dollars.
But again, that depends on yournet worth and it depends on your
circumstances and what theinsurance company will actually
cover you for.
And most likely, they're goingto start asking you questions
(09:06):
about why you want one, whatkind of things are on your
property that might beproblematic.
You know, do you have a sandpit?
Do you have old vehicles onyour...
property?
Do you run some type ofbusiness?
Do you, you know, have a swingset that's unprotected?
Who knows, right?
There can be all sorts ofsituations.
(09:27):
I know when I was a kid, we hadsome neighbors several doors
down that had a trampoline thatthey put in their swimming pool
when it was empty.
And we went over there all thetime and jumped.
And I can't tell you the numberof kids that got injured when
they bounced off that thing andthen bounced onto the concrete.
It just happened.
(09:48):
I don't remember anyone gettingsued, but those were way back in
the days.
Now today, you'd probably stubyour toe and get sued.
It's just those kind ofsituations you hear about these
days.
Anyway, I think that an umbrellapolicy, like I said, is a really
good reason to have one.
There's all sorts ofcircumstances that could warrant
(10:09):
it.
And when you're going to buyone, Then that's also probably
the same.
At the same time, the insurancecompany will probably look at
your overall policy with you,your policies with you, your
auto insurance, your homeowners.
If you have renters, right, youshould carry renters insurance
(10:32):
because I can't tell you howmany circumstances where renters
really need a renters policy.
I'm even going to throw this outtoo.
I remember when years and yearsago I was living in an
apartment.
I came home one day and the doorwas busted in.
And I walked in, took a lookaround.
I saw all kinds of things pulledout from all the shelves and
(10:55):
closets.
And it was a complete mess.
I called the police.
They came over.
They took a look around.
They took reports.
They took...
you know, fingerprints, etc, allthat good stuff.
In fact, I remember one copasking me, he said, you know, do
you happen to have any serialnumbers for your stereo
equipment and things that weretook?
And I said, Yeah, you know, Ido.
(11:17):
And, you know, at that time, Iremember when I don't even know
if they do this anymore.
But if you buy at the time, youwould buy your electronic
equipment, let's say your stereoreceiver.
And usually there was a like acard came with it, and the card
would have, like, mail this inregistration that contained the
serial number on it.
Something I didn't do at thattime, but I had intended to do
(11:40):
it, and I had slipped all thosecards underneath the electronics
with the intention of, hey, youknow, at least I know where they
are when I get ready to do it.
Well, lo and behold, I never didit.
The unit got stolen, and there,laying on the table, was the
registration cards with theserial numbers on them.
So it was incredibly lucky forme.
(12:02):
And then I remember when thedetective gave me a call one
time and he said, hey, you knowwhat?
We found your VCR.
I said, oh, really?
Where was it?
He said it was at a pawn shop.
He said, by the way, do you haveanybody in your family who's a
midget?
I don't even know if that's theright word to use anymore.
(12:23):
So I apologize if that's not theright word.
Short person, I guess maybe itis.
I'm not sure.
Sorry.
But anyway, I said, no, I don't.
I have an uncle who's a jockey.
That's about the closest.
I think my mom's only five feettall.
But anyway, I said, no.
I said, why?
He said, that's the person whowas ponying it, and you just
happen to have the same lastname as you.
(12:44):
I was kind of floored, and thatwas funny.
Never got that back.
I don't even know what happenedto the guy either.
But hey, you know, c'est la vie.
Nevertheless...
It's just a good idea to carrythe right amount of insurance
for the right reasons.
And usually, again, when yourunderlying policies are
(13:05):
reviewed, they're going to makeyou max them out to the fullest
extent before they kick in thatumbrella policy because it's
going to dovetail off of thosetwo, your auto and your
homeowners.
And that just, again, dependswhatever the liability ends up
being.
So that's...
pretty much it for me in thatregard.
(13:26):
Give it some thought, contactyour insurance professional,
have that discussion with him orher or the company and, you
know, look around, shop around.
If you do have your financialadvisor, I'm pretty sure that he
or she will discuss that withyou.
If your advisor, planner,whomever is only going over your
(13:48):
investments, you may want toreconsider that relationship
because they should be taking alook at your whole enchilada.
And again, all your insuranceneeds should go into that
review.
And also speaking of that, yourlife insurance as well, which
makes me want to, go into that alittle bit more.
(14:10):
I know I discussed it before.
There's some other circumstancesI'm thinking of that make me
want to talk about it again, butI'll save that for another day.
Anyway, that's pretty much itfor me.
I hope you're having a greatday, and I will talk at you
later.
Tell
SPEAKER_01 (14:27):
me
SPEAKER_00 (14:28):
why!
UNKNOWN (14:31):
Tell me why!
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