Cost is a key factor when you are shopping for umbrella insurance. When looking for the lowest cost policy or ensuring you have the best value on the policy you already hold, it’s a good idea to understand the factors that go into the cost of your umbrella insurance premium.
An independent agent in the Trusted Choice® network can answer any questions you might have. Independent agents are devoted to helping you to get your questions answered so you can make an informed choice. Your agent can compare policies, options and quotes from several insurance companies and help you choose the right umbrella insurance for you. Contact an agent today to get started.
You may want to set up a “cost-benefit analysis” as you start to compare umbrella insurance policies. Here is some data to help you get started:
As you can see, there are several ways that an umbrella policy can help protect you for a relatively low cost.
So, you’ve decided that spending extra money for excess liability coverage is a worthwhile investment to protect what you’ve earned. There are a number of factors that may affect your umbrella insurance costs, including:
The cost of umbrella insurance can range from $200 per year on the low end to over $1,000 for a high limit, such as $10 million worth of umbrella liability coverage. How can you determine your costs?
The first step is to assess your net worth. Determine the value of your assets, including liquid assets, investments, retirement funds, properties and annual income. You may need to consult an investment advisor or attorney.
Next, review both your risks and whether you may be a “target” for liability lawsuits. If you are a high profile person or have considerable assets that an attorney will find inviting when defending a client, you want to factor this into your costs.
Finally, choose an amount of coverage that can protect you from potential lawsuits that could threaten your savings and standard of living. By many recommendations, the coverage amount should be at least equal to your net worth, but that may just be a starting point for you. A report by ACE Private Risk Services, for example, pointed out that judgments in severe cases have run $14 million to $49 million.
The ACE report provides these typical annual costs:
Working with an independent insurance agent can help you get the information you need to determine the right amount of coverage for your family. Additionally, your local agent can help you compare multiple quotes and look for discounts on your policy.
Buying umbrella insurance is a balancing act – you must find the amount of coverage that can secure your assets at a cost that makes sense for you. Umbrella insurance can protect your life savings, but finding the best policy at the best price for your needs and budget can be a challenge because no two insurance companies are alike.
Working with an independent agent in the Trusted Choice network can make your search much easier. Local member agents have access to quotes and policy options from multiple insurance companies and can help you find an affordable umbrella insurance policy that will help cover your risks. Contact a local member agent today for personalized assistance.