What happens when damages exceed your insurance coverage? How can an umbrella policy help? These policies provide additional liability coverage over your underlying auto, homeowners, and watercraft policies. For our clients, it’s worthwhile protection from the steep financial risks we experience in a litigious society. Determining how much umbrella insurance you need can make all the difference and CAV Insurance is here to make sure you understand your options and have access to policies that fit your needs.
Understanding Umbrella Insurance
An umbrella policy is designed to sit on top of your auto, homeowners, and watercraft liability coverage. If you injure someone in an auto accident or someone gets injured while on your property, your home or auto insurer will help pay for damages up to the liability limits in your policy. If the damages exceed these limits, the injured party can then sue you for the difference. Fortunately, an umbrella policy can help protect you and your assets in the event of a liability claim.
How Much Coverage Do I Need?
As a general rule, the more assets you have acquired, the higher your risk for litigious encounters. Affluent individuals should seek additional coverage to protect their assets and financial security. According to this Forbes.com article, you should have an umbrella policy that covers at least your net worth – which is generally what you stand to lose in a lawsuit. Umbrella insurance is typically sold in increments of $1 million and can cost as little as $180 a year for the first $1 million of coverage. However, what you actually pay will depend on a variety of risk factors.
Factors Influencing Your Umbrella Insurance Needs
Several factors impact how much umbrella insurance to choose. Some risk factors that call for more insurance than others include:
- Having teenage drivers
- Employing domestic workers
- Owning watercraft or an ATV
- Having a backyard pool
- Serving on the board of a non-profit organization
- Being active on social media networks
If you fall into several of these categories, your liability risk is higher than average. Consequently, you may need to opt for more umbrella insurance to protect your assets.
Secure Your Future with CAV Insurance
Finding the right umbrella insurance protection doesn’t have to be challenging. Talk to the reliable team at CAV Insurance to get started on your policies! Our experts are well-versed in finding the right coverage for unique situations. Contact us at 781-237-4107 to get started.
Why Choose CAV Insurance?
At CAV Insurance, we specialize in providing comprehensive coverage tailored to the needs of Wellesley’s affluent homeowners, professionals, and business owners. Our local expertise and personalized service ensure you receive the best protection for your assets. Don’t leave your financial security to chance—reach out to us today.
Optimize Your Coverage with Expert Guidance
Understanding and choosing the right umbrella insurance coverage can be complex, but with expert guidance from CAV Insurance, you can feel confident in your decisions. For more information or to schedule a consultation, give us a call at 781-237-4107.