How much umbrella insurance should you buy?

While everyone is at risk of getting sued at some point in life, some people are at a higher risk than others. That means we all need some level of liability insurance such as umbrella insurance to protect us from big-ticket lawsuit judgments and other liability claims. At Asheville Insurance Center, we recommend having more liability than having too little. So, how much umbrella insurance should you buy? Here are a few tips to help you out.

Understand how umbrella insurance works

Umbrella insurance acts as an extension on the liability coverages you already have in your home, auto, boat, and other standard policies. That means umbrella insurance will only come in when the primary liability in your standard policies is depleted.  Insurance companies in Asheville, NC, typically check the number of homes, cars, businesses, and the number of people in your policy to determine the cost. The more the assets, the higher the cost.

Use online calculator

If you are unable to calculate the value of your assets, there are many insurance calculators that can help you with this type of calculation. Umbrella insurance calculators can help you assess how much umbrella you need based on what you’re insuring.

Know your risk level

If you’re wealthy, you’re likely to lose more money if you’re slapped with a lawsuit. If you have businesses all over Asheville, NC, you are dealing with a vast number of people who can sue you for various reasons related to your businesses. Parents of teenagers are also at higher risk of getting into trouble with the law if their teenagers cause fights or accidents that lead to injuries and property damage.

If you’re unsure how much umbrella insurance to buy, an insurance professional at Asheville Insurance Center can help you with the calculation. Feel free to call for more information on umbrella insurance, quotes, or other policy discussions.