Let’s say you’re participating in an event with other people, and you accidentally harm somebody severely. You’re responsible for covering the cost of the hospital expenses. Although you might have insurance that covers an event like this one, the expenses might exceed the amount of insurance you have. If you should happen to be held accountable, the amount of your insurance will cover the cost, but you have to pay for whatever insurance didn’t cover. If you don’t have the money, you could find yourself severely in debt and having to sell your possession to cover the expenses.
You obviously want enough insurance that covers the cost of your assets. For instance, if you have $1,000,000 worth of assets, you want $1,000,000 worth of insurance. If you have $2,000,000 worth of assets, you want at least $2,000,000 worth of insurance. Keep in mind, if you earn an annual income that exceeds $100,000 per year, you need umbrella insurance to protect your income. You’ll need even more if you make $200,000 per year. We’ll ask you specific questions regarding your income and financial situation, so we can help you determine the amount of umbrella insurance that’s ideal for your particular needs.