Most people are familiar with the basics of insurance: you pay premiums to an insurer in exchange for protection against certain risks. Homeowners insurance, for example, helps to safeguard your home in the event of a fire or other disaster. Auto insurance protects your car against damage or theft. But what about umbrella insurance?
Umbrella insurance is a type of coverage that can provide additional protection against certain risks, over and above what your regular insurance policy covers. But how much umbrella insurance do you need? Sump Insurance in Clarinda, IA can help you navigate this important coverage.
Here are a few factors to consider:
1. The Value of Your Assets
One of the main reasons to carry umbrella insurance is to protect your assets. If you are sued for damages exceeding your regular policy’s coverage limits, umbrella insurance can help cover the costs. So, a key factor in determining how much umbrella insurance you need is the value of your assets. This includes not only your home and car but also other property such as jewelry, art, and collectibles. If you have significant assets, you may want to consider purchasing umbrella insurance with higher coverage limits.
2. Your Exposure to Risk
Another factor to consider when determining how much umbrella insurance to buy is your risk exposure. This includes both the likelihood that you will be sued as well as the number of damages you could be liable for if you are sued. If you have a high-risk job or participate in activities that increase your chances of being sued, umbrella insurance can provide valuable protection.
3. The Coverage Limits of Your Regular Policy
When considering how much umbrella insurance to purchase, you should also look at the coverage limits of your regular policy. If you have a high-deductible policy or only carry minimal coverage, you may want to consider buying umbrella insurance with higher coverage limits. Doing so can help to fill in the gaps and provide additional protection.
Get Umbrella Insurance in Clarinda, IA
Now that you know some of the factors to consider when determining how much umbrella insurance to buy, it’s time to get a quote. Sump Insurance can help you find the right coverage for your needs. Call us today for a free quote.
