Charlotte NC Insurance: Do You Need Umbrella Coverage?

Every decision includes several different factors that need to be considered before it is made. What are the factors that you should consider when deciding if you need an umbrella policy? Charlotte, NC insurance umbrella coverage serves as protection for individuals who face the possibility of lawsuits or have valuable assets to protect.  Are you at risk? 

Do You Need an Umbrella Policy?

There’s a simple way to determine whether it’d be in your best interest to consider purchasing additional liability coverage. Follow this formula: 

Total up all of the following – Your salary, the value of the equity in your home (estimated market value – what’s left on your mortgage), the value of any real assets (jewelry, land, etc.) and the value of your business (if you have one). Then subtract any other debts (such as credit card balances or student loans). 

If your total was $300,000 or more, then you should strongly consider purchasing umbrella insurance. The extra liability coverage acts as an add-on to your current liability coverage offered by your auto and home policies, and is only activated once you exhaust those liability coverages. An umbrella policy is relatively cheap (around $200/year for a $1 million policy), and is a safety net for those that need it. 

Other factors that could add to your likelihood of needing extra liability coverage are if you have a dog (as dog bite claims are steadily rising), a pool (since drowning is much too common), or teenage drivers whom are involved on average in 13% of fatal accidents. 

Still want more information on purchasing an umbrella insurance policy or want to learn more about Charlotte NC insurance? Visit our website or call today at 877-318-5951!

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