Shelling out extra money for umbrella insurance may make you a little hesitant, but if you have a significant net worth than it likely makes sense to opt for the coverage. Additionally, if you have significant net worth plus you drive frequently, have a pool or another dangerous item like a trampoline, or keep firearms in your arm having an umbrella policy is worth the cost. In short, the whole premise of umbrella insurance is to protect your assets to include vehicles, real estate properties, and investments from a lawsuit. Let’s take a deeper dive.
How To Decide if you Need Umbrella insurance
Since there’s no one size fits all answer for this question, it’s important to ask for help. If you are located in the Selden, NY area, the XL Brokerage Inc wants to be your go-to solution for any insurance needs. We’ll ask you a few simple questions to help determine if umbrella insurance is right for your situation. For a quick guide, we recommend calculating your net worth by adding the value of your assets and subtracting any debt (ex: mortgage). Once done, check how much liability coverage you already have on your various insurance policies and subtract from the figure determined in step 1 (determining your net worth). The difference between your current liability coverage and your net worth is how much money or total assets is unprotected. If it’s a substantial figure than an umbrella policy is a good idea.
Is it worth it?
Ultimately, only you can decide if having an umbrella decision is right for you but at XL Brokerage Inc in Selden, NY we want you to feel confident and informed no matter which way you go. If you have significant assets, then the little bit of extra cost every year is worth the peace of mind. While hopefully, you will never have to use your umbrella insurance policy, if it’s needed you will be thrilled that you have it.