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What Is Asset Protection Insurance

Cohen Law > Patent  > What Is Asset Protection Insurance

What Is Asset Protection Insurance

Asset Protection Insurance

In a world of uncertainty, it is always essential to have a backup plan and Asset Protection Insurance is the perfect contingency plan. But what exactly is it?

Asset Protection Insurance

As the name suggests, Asset Protection Insurance was designed to protect your assets. Your car, your home, any recreational vehicles, etc. are included in an asset protection insurance policy in case you need additional coverage than the one provided by traditional policies.

Also Read: PRINCIPAL VS. SUPPLEMENTAL TRADEMARK REGISTER DIFFERENCES

The main purpose of Asset Protection Insurance is to cover the gap between the present market value and the original invoice price of the property in case of an unexpected event. What’s more, this type of policy protects your property when a legal judgment surpasses your existing insurance coverage.

There are different types of insurance available, depending on the kind of protection you want.

Umbrella insurance

This type of policy is a personal excess liability insurance policy designed to protect you beyond the limits of your other insurance policies such as homeowners insurance, car insurance, or other personal insurance policies you may have.

An umbrella liability insurance policy can protect you against litigation and the costs deriving from personal injury or property damage to others.

Guaranteed Asset Protection (GAP)

As it acronym states it, this policy was designed to cover the gap, or difference, between the actual cash value of your car and the amount you owe to the lending institution. It comes in handy when you need to cover the loan on a car, a watercraft, or another type of recreational vehicle.

Life insurance

Not typically thought of as an “asset protection insurance”, but it is from the point of view of your loved ones. Having life insurance will allow your family to have certain degree of financial security in the case that you pass away. This type of insurance was conceived to protect the family of the deceased against debts and other expenses that might be too overwhelming once you are gone. It keeps them from becoming destitute if they find themselves in financial hardship caused by your passing.

I guess you are wondering

What are the advantages of getting Asset Protection Insurance?

  • You will find yourself covered when additional insurance if needed.
  • You won´t risk losing what you worked so hard for.
  • It provides protection in case of a lawsuit.
  • Total asset protection Insurance, this means ensuring that you get back what you paid for your property.
  • Peace of mind for you and your loved ones.
  • Protection for your investment.

Whichever asset you are looking to protect, if it’s just your car or your home, or if you have amassed a substantial amount of wealth and want to protect it against legal actions, it is always better to be safe than sorry. If all your hard work has paid off and now have a significant amount of assets that need protection, and are not sure which type of insurance best suits you, seek the advice of specialized lawyers to help you decide which type of asset protection insurance policy works best for your particular case.