DeNooyer Direct Insurance Services, LLC

2038 Central Avenue
Albany, NY 12205

Insurance Blog

Should You Have an Umbrella Policy?

Umbrella insurance in Albany, NY is additional liability coverage that will kick in once you have already exhausted your home and auto insurance. Since the point of this policy is to protect assets from a lawsuit, it makes sense to get this policy when you have assets to protect.

Depending on your lifestyle, you may have additional risks that make having umbrella insurance an attractive option. For those who own boats, cars, or other vehicles, coach youth sports, have dogs, have guests in their home, have rental properties, or who talk about other businesses and people, an umbrella policy can provide protection against lawsuits. These activities can increase the chances of a lawsuit even if they may seem harmless.

In order to determine if an umbrella policy is right for you, start by calculating your net worth. This is the value of all your assets, including cash in the bank, your home, stocks and bonds, retirements accounts, and anything of financial value. Then subtract your debts to determine the net worth. Next, find out how much liability coverage you already have on your existing policy. For an auto policy, you need to look at three different numbers. Take the number you found in the second step and subtract it from the number in step one. The difference is the amount of money that you have that can be up for grabs in a lawsuit. An umbrella policy to cover this will give you full protection. For many people, a basic umbrella policy of $1 million is enough. You should have more coverage if your assets left unprotected total more than that. An agent at DeNooyer Direct Insurance Services LLC can help you determine the best amount. You aren’t able to bump up coverage while you are in the middle of a lawsuit so it can be better to have too much instead of too little.

Contact DeNooyer Direct Insurance Services LLC, serving Albany, NY, to get a quote on umbrella insurance. 

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