It doesn't take a genius to realize that the more you're worth the more you have to lose. The stakes are higher as you get closer to reaching your financial goals. The truth is, though, even if you're just starting out and you've only accumulated a small amount, losing it means going back to start all over; but with the loss of valuable time. Umbrella insurance is your protection against having to start all over again.

As soon as you've begun to secure your financial future you need an umbrella insurance policy. Here's why:

1. Umbrella policies provide coverage for those areas where you are not already covered. These are the gaps between your auto, home and any other liability insurance you may carry. Your umbrella policy is intended to bridge any gaps in your fiscal defenses, which prevents you from having to hand over your own hard-earned assets.
2. Your umbrella insurance will also serve as an extension to your other policies' coverage. In the event a judgment goes against you - yes, it can happen, and judgments seem to be forever growing - your liability coverage may not completely cover the award. This will be where your umbrella policy will take over, providing you with plenty of extra cushion.
3. Umbrella insurance is an inexpensive investment. Policies for up to $5million in coverage can be obtained for pennies a day. Hopefully you'll never need it. And if you don't, you're not likely to even miss the money for all the good nights' sleep it will bring you.
4. Deep pockets. Even though you're a smart investor operating in stealth mode, once a plaintiff and his lawyer find you out you'd better believe they will go for the whole loot. Should you ever have the misfortune of becoming subject to a lawsuit while covered by an umbrella policy, you'll have a company with up to 5 million additional reasons to help you mitigate the damage.

You've worked hard to achieve your wealth, your standard of living, our way of life. It's your responsibility to protect it.

As for me, when I decided to purchase an umbrella policy several years ago, I simply called the insurance guy I've been doing business with for the past few years. He was happy for the business, of course, but he also gave me a really decent discount for carrying my other policies.

It's worth looking into if you have accumulated any sum you don't want to lose.