If you’re considering adding umbrella insurance to your home policy, it’s important to remember that while some assets are covered, you’ll need protection if you’re found liable for damages exceeding your standard liability coverage.
Real Estate
Any real estate you own, including your primary residence, vacation properties, rental properties, or land, should be covered by your umbrella insurance policy. These assets are typically the first to be frozen and sold if you can’t pay for damages. You should ensure these properties are included in your insurance policy, considering their current value and adding at least 10 percent to account for future value.
Vehicles and Recreational Equipment
All vehicles you own, including any classic cars, should be covered. Additionally, recreational equipment such as ATVs, UTVs, boats, watercraft, and RVs should be included. These items can be quickly sold at estate sales to cover expenses and damages, so your umbrella insurance must cover their combined value.
Financial Accounts and Investments
Your checking and savings accounts and any stocks you own can also be frozen and sold to pay for damages. You can protect their current value and anticipated future worth with umbrella insurance. It’s important to have enough umbrella insurance to cover these accounts so you don’t have to liquidate them.
When setting up your umbrella insurance policy, ensure it covers at least the current value of your assets. It’s good practice to add at least 10 percent to that number to account for future increases in net worth.
If you’re in or around Brandon, FL, contact our agents at Runnels Insurance for more information on umbrella insurance.
