How Much Umbrella Insurance Should You Have?

An umbrella insurance policy in Scotia, NY picks up where your home and auto insurance leave off. Policies are usually sold in $1 million increments.

In order to determine how much umbrella insurance you need in Scotia, NY, you can work with an agent at DePaulo Agency. You can also do some calculations by yourself.

You first want to assess your risk. A car accident is one of the most likely scenarios that triggers the need for excess liability coverage because a fatality or permanent disability could result in large judgments. Your risk will be higher if you have a longer commute and the more you drive, or if you are insuring elderly or teen drivers. Condo owners can also be held responsible for damage to other units. You can also be at a higher risk if you have a trampoline or swimming pool in your yard, or have a boat. You may need added coverage if you serve as volunteer on a nonprofit board since you won’t be protected from all potential lawsuits.

You will want to know your net worth, which is your assets minus any debt you have. You also need to know your home equity and the value of your retirement plans. Add up these values and then subtract the maximum limits of your liability coverage. This can give you an idea of how much of your assets are left unprotected from your current liability coverage and how much you should be purchasing. While you can increase your liability limits on your home and auto, it may make more sense financially to get an umbrella policy. You could possibly get a discount if you are buying all three policies through the same insurer. At a minimum, you should have $1 million in coverage and if you have significant assets, you should have more.

Contact DePaulo Agency to get a quote on umbrella insurance.