If you are concerned that your auto and home insurance don’t provide enough coverage, umbrella insurance provides financial protection from excess liability claims. We offer reliable umbrella insurance at Toney Insurance Services in Snellville, GA.
The Basics of Umbrella Insurance
Insurance policies have coverage limits. This is the maximum amount your policy will pay for a claim. However, liability judgments can cost more than the coverage limits of your policy.
Umbrella insurance is designed to protect you from catastrophic liability claims. Generally, umbrella insurance picks up where your standard auto or home policy stops.
For example, you are responsible for a 10-car accident. The costs add up to $1 million in damages. However, your auto policy only covers $500,000. In this case, without umbrella insurance, you would be responsible for the remaining $500,000. Umbrella insurance will cover the remaining $500,000.
Requirements for Umbrella Insurance
You must have the maximum coverage limits on your auto and home policies to get umbrella insurance. This reduces the risk that you will need your umbrella policy.
Considering Net Worth
Experts typically recommend getting umbrella insurance if your net worth is more than $500,000. You can determine your net worth by adding all your assets. This includes any property you own, retirement accounts, and bank accounts. Then, subtract any debt you have. This is your net worth.
You should have an umbrella policy equal to or greater than your net worth. This protects your assets from any liability judgment against you.
However, it would be best if you also considered your future financial security. A liability judgment can include future earnings as well as your current assets.
Umbrella Insurance at Toney Insurance Services
If you need umbrella insurance in Alabama, contact us at Toney Insurance Services. Our agents are waiting to discuss your needs and help you select the best policy for your situation.
