While it is always better to be over-insured than underinsured, carrying too much umbrella insurance is not a wise financial decision. Umbrella insurance typically covers the standard things that other basic policies cover, which means that it cannot be used independently as a coverage. If you are looking to buy extra liability or umbrella insurance in Dadeville, AL, it is essential to understand how much coverage you need. At Highpoint Insurance Group, we are here to take you through the insurance journey and help you make smart insurance choices.
Assess your level of liability risk
Today’s complex society is quite litigious. That means that you are exposed to a wide array of lawsuits as a property owner. Since umbrella insurance focuses on providing extra liability coverage, you need to determine your level of need for liability. Lawsuits can be expensive in Dadeville, AL. They can quickly wipe out your savings and monthly earnings, leaving you bankrupt. So, which other factors should you consider when assessing your liability risk as a property owner?
- if you drive a fast car
- you have employees
- you are involved in extreme sports or highly risky sports
- you have a working spouse
- you have children below the age of 16
- you are a homeowner
- you have teenagers in your home
- you have other businesses
Your need for umbrella insurance may go down if you have higher premiums on other policies
Note that if you have bought enough coverage on other policies, the chances of ever using umbrella insurance becomes minimal. Remember, you can only use this coverage if the underlying home or boat insurance policy is used and depleted. Additionally, if you own rental properties, you are at a higher risk of getting sued.
Umbrella insurance is an all-round kind of coverage that can protect you from a wide range of lawsuits, whether at your property, home, or on the roads. If you are still not sure how much insurance you need to buy, feel free to talk to us at Highpoint Insurance Group today!