How Much Umbrella Insurance Coverage Do I Need?

In today’s world, having insurance is important to protect yourself from unforeseen damages and losses. In fact, it is mandatory in most states to protect your home, car, or other assets. The problem is, many people only have an insurance policy that meets the state’s minimum requirements. While it protects the policyholder, it does little to pay for the total cost of your damages if you are involved in an accident. An umbrella insurance policy can help, even if you already have a standard insurance policy as required by your state. While other policies can pay only up to the specified limits, an umbrella insurance policy will pay over and above these limits and cover any remainders. The additional coverage you gain from this policy is well worth the cost when you consider what might happen without it.

How Umbrella Insurance Policies Work

Umbrella insurance takes effect once the limits of your traditional policy have been met. This policy covers any cost or expense that you may incur after your policy’s limits have already been met. In most cases, your umbrella insurance will help you pay off any amounts that are owed due to an accident. This can also protect you if you are sued due to an accident or injury. An umbrella insurance policy will make additional payments until all of your financial obligations, including your legal expenses, are met. While a standard policy may focus on a specific aspect, an umbrella insurance policy provides greater coverage overall, giving you a greater sense of protection.

Purchasing the Right Coverage

Purchasing the right umbrella insurance policy is important if you plan on self-insuring yourself. Even if you have the maximum amount of insurance, the limits may not be enough if the accident you are involved in has caused extensive damage. Before buying umbrella insurance, talk to your insurance agent. They can help you go over your existing policies, evaluate the limits you have in place, and then recommend a policy that will protect you and your assets from future financial losses. Again, this can include accidents you may not have considered as a potential risk.

Extent of Coverage

If you want to purchase umbrella insurance, the insurer that you are buying it from will normally want to include your homeowners, auto, and commercial policies. Having a single provider for all your insurance needs will make it much easier to handle your existing policies. Having multiple insurance providers for covering different assets can make matters complicated. Many insurance companies will not underwrite an umbrella insurance policy unless they are able to include all of your other policies as well. This way they know that all of your existing insurance policies meet their standards and expectations.

Purchasing umbrella insurance is a great way to protect yourself from devastating loss if you are ever involved in an accident. With umbrella insurance coverage, you can rest assured you are financially secure, even if exceed your standard policy’s limits. If you are curious about your own insurance situation, contact our experienced agents at Premier Risk, LLC. We have the answers you are looking for when it comes to protecting your assets with the right insurance coverage. Contact us today on Long Island, New York to get started!

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