Your business, your autos, your properties, investments and retirement accounts, as well as your normal checking and savings accounts and even future income, are all considered assets. It is important to know that if you are sued for a lot of money and do not have enough liability insurance or an umbrella policy to cover those costs, all of your assets are exposed.

People typically choose to buy an umbrella policy to prevent the possibility of financial ruin due to one misstep or unforeseen accident. Umbrella insurance can provide the protection to prevent such an outcome.

Coverage for an umbrella policy typically starts in the range of $150-$200 for a $1 million policy. Your premium will increase if you decide to increase coverage.  However, getting twice the amount of coverage and increasing the policy limit to $2 million will not usually double the cost of your premium.

The majority of umbrella insurance policies do not cover uninsured motorists. An umbrella policy is meant to cover any property damage or bodily injury you cause. In a scenario where an uninsured or underinsured motorist causes an accident and does not have the coverage required to pay for your property damage or injuries, you would typically need to have uninsured/underinsured motorists coverage in place to receive compensation.

When choosing your coverage limits, consider three things:

1. The risks you may face.Consider risks as a homeowner or renter, the risk of causing an accident during your work commute, and any potentially dangerous activities you participate in that could put those around you at risk.
2. The value of your assets.These include properties, possessions, stocks, bonds, savings and retirement funds. The more assets you have to protect, the higher the umbrella policy limit you should consider.
3. The potential loss of future income.Since liability lawsuits can result in loss of both current assets and future income, even those with few assets to protect may want to consider the long-term ramifications of a serious claim.

When you review your future income, consider your earning potential. You may not have many assets now, but if you’re on track for a high-paying career, you could be involved in a lawsuit that can target money you haven’t earned yet.

Griffin Stone works with many companies who write Excess Personal Liability, please note that our agency must write your primary home and/or auto policy to provide your excess personal liability coverage.

Contact us for more information.