How to determine how much umbrella insurance to buy
Long before umbrella insurance became popular, many people believed that it was only for the wealthy. Today, everyone in Cheshire, CT is adding liability to their policies as lawsuits get more expensive. While umbrella insurance can only be used after the standard policies are depleted, it’s always wiser to have excess than little. Insurance experts at SEEC Financial recommend assessing your risk level to determine how much umbrella insurance is enough for you.
Calculate your net worth
You don’t need to be a financial expert to know your net worth. Net worth is the value of your assets minus debts. If you receive a salary every month, have businesses that generate income and properties, they all add up to your net worth. Knowing your net worth allows you to plan and determine your umbrella insurance limits.
The amount of liability you have on other policies
It’s also worth checking your liability coverages on home, boat, and auto insurance policies. It’s almost impossible to tell how costly accidental damage or injuries can get. If you’re a parent, have teenage children and young drivers at your home, you may want to buy umbrella insurance to provide more coverage on your home insurance policy.
If you’re an asset owner in Cheshire, CT, you need umbrella insurance to protect yourself and your assets. Remember, the wealthier you are, the costlier the lawsuits. If everything you own goes beyond $1 million, that should be your minimum umbrella insurance.
Your risk level of getting sued
Some people are at risk of getting into accidents that could lead to property damage, injuries, or even costly lawsuits than others. Assess your level of risk from your job’s nature to your businesses and properties to determine how much liability you need.
Looking to add some additional liability to your policy? SEEC Financial can help you find a policy that fits your needs and budget. Contact us today.