Umbrella insurance is coverage that goes beyond the standard amounts provided through your current policies. With umbrella insurance, coverage begins after you have maxed out the limits imposed by your homeowner or automobile policies. Although most consumers know that it’s important to have an umbrella insurance policy, they may not know exactly how much coverage to get. Farrell Insurance Associate Inc. is here to help choose the right umbrella insurance plan for you.
Look at Assets
A good way to start deciding on how much umbrella insurance to get is to review your assets. If you were to liquidate today, how much would your estate be worth? Umbrella insurance is meant to protect against judgments. If you have a $1 million judgment made against you and your worth is $1 million, you will lose everything. Umbrella insurance is typically sold in million dollar increments with $2 million policies usually offering adequate protection for most individuals.
In some cases, you will want to choose a higher coverage amount for your umbrella insurance policy. Take the time to assess your likelihood for being sued. For instance, homes undergoing renovations are more likely to cause bodily injuries. Properties with hot tubs, trampolines, and swimming pools also carry a greater lawsuit risk. If you own vacant land that has public access, you may be susceptible to judgments if someone is hurt there. Another risk is having young drivers in the home since they are more likely to be involved in automobile accidents. When you have a higher liability risk, choose a policy with increased coverage limits.
Overwhelmed by comparing umbrella insurance policies? Get in touch with the friendly agents from Farrell Insurance Associate Inc. The agency serves clients throughout the Lansdale, PA area.