How Much Umbrella Insurance Do I Need?

It’s not always pleasant or easy to think of worst-case scenarios, but if we want to protect our property, it is well worth thinking about. Imagine if your car, pet, or child has damaged someone else’s property. They are suing you and the cost is astronomical. If something like this happens to you, your current home or auto insurance might not be enough to cover legal fees and judgments. Luckily, umbrella insurance can guarantee your liability is covered – but only if you select the right amount. Take a look at how to determine how much umbrella insurance in Nassau County, NY you should consider.


What does umbrella insurance cover?

An umbrella insurance policy typically covers the same things as your home and auto insurance policies, plus a few more, including lawsuits that arise from operating rented watercraft, or from alleged libel. In essence, an umbrella policy picks up where the liability limits of your homeowners and auto policies stop. If you exhaust your current liability coverage in your home or auto coverage, then your umbrella policy will step in to help.


Weigh your risks

If you’re unsure about whether or not you need an umbrella policy, consider the risks your lifestyle poses to you and your family. For example, if you have a trampoline in the yard and someone gets injured using it, you may be faced with a lawsuit and their medical bills.


Umbrella insurance is a wise investment for those who:


  • Have vacant land
  • Own a swimming pool, hot tub, or trampoline
  • Have a pet
  • Have rental properties with tenants
  • Own recreational vehicles
  • Host large parties at home


Determining how much coverage you need

The primary purpose of an umbrella insurance policy is to cover the cost of lawsuits. Unfortunately, today, lawsuits quickly add up to millions of dollars worth. Always determine your coverage amount of the worst-case scenario – how much can you lose if you lost the lawsuit?

  • Calculate your net worth. This is equal to your assets (what you own) minus your liabilities (what you owe).
  • Account for future income. Multiply your current income by five and add it to the total to ensure your coverage can protect against wage garnishing.
  • Add on collateral damage. If you have dependents, understand that they may be hurt if you lose everything. Add on a little extra coverage to ensure they are protected.


Many can benefit from an umbrella insurance policy. Talk to the professionals at Northeastern Group to determine how much umbrella coverage you need and to secure the right, reliable policy for your needs. As experts in the industry, we help you through every step of the process. We look forward to working with you.

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