Three Factors to Consider When Purchasing Umbrella Insurance

Being underinsured puts your financial future in jeopardy. In the event of an accident at your home, if your liability exceeds your policy’s limits, you risk losing your assets in a civil suit. The right level of umbrella insurance may fill this gap and keep you protected.

Current Coverage

It’s hard to assess your need without knowing what you have. Evaluate your policy with a focus on coverage limits. Take a homeowner with a $100,000 personal liability limit, for instance. During a typical Minnesota winter their sidewalk is covered with ice, resulting in a friend slipping and falling. If their injuries require extensive medical treatment, liability could easily exceed this maximum.  Use current coverage amounts as a baseline to build from.


What’s the value of your assets, including retirement and stock accounts? The more you’re worth, the more coverage necessary. Secure umbrella coverage that closely compares to your assets and your future projections. For instance, if your retirement account will increase by 15% in two years, in a lawsuit, this increase could be targeted. The purpose of an umbrella policy is to safeguard your financial future. Choose a policy suited to meet this need.


The type of risks a homeowner faces offers an idea of how much coverage is necessary. Homes with pools, trampolines or owners of aggressive dog breeds are thought to be at an elevated accident risk. An increased accident risk can inherently elevate your chances of a liability suit. In some instances, the basic liability coverage extended in polices may not be enough to cover losses. The greater the risks, the more coverage necessary.

Choosing a coverage amount can be a challenge, but an experienced agent can help. Visit the Pizano Insurance website to be connected with an agent who can assist you.