Understanding Umbrella Insurance: What Assets Can Be Covered

If you’re contemplating adding umbrella insurance to your home or business property, it’s crucial to understand precisely what assets can be used to cover expenses so you can protect them. Below are the different assets you can cover.

Bank Accounts

When deciding how much to get, include all your checking, savings, or investment accounts with banks or local financial companies in the insurance policy. The amounts in these accounts can be frozen. If you have accounts at multiple banks, ensure they all receive coverage on your umbrella insurance policy.

Real Estate

Whether you own a home, multiple properties, or farmland, these assets can be frozen and sold to cover any expenses incurred from a court case. Properties in which you have partial ownership should also be included. If you don’t use the property or even if it appears abandoned, include it. The value of these properties should reflect the amount of your policy that covers them.

Vehicles

The vehicles you use for daily commutes, family use, or leisure, like sports cars, are considered assets. This also includes collector vehicles that may not even be on the property.

Future Income

Despite your current income, consider putting aside money in the umbrella insurance policy to cover future earnings. Some settlements might require future payments, and your potential future income can be used to settle the debt.

When building an umbrella insurance policy, it’s important to include anything of value that can be sold. If you have additional property you are unsure about or have general questions, our team at Steiner Insurance Group is here to assist. We proudly serve residents in the area surrounding Nashville, NC.

People who understand what umbrella insurance is and does know that wealth isn’t required for umbrella insurance. At Steiner Insurance Group in Nashville, NC, we are an independent agency with the answers you need to make an educated decision. We provide more choices from the multiple carriers that we can offer to our customers. 

The name umbrella insurance describes how the insurance protects you. Think of umbrella insurance as a natural umbrella, and you are your assets. As your umbrella protects you from the rain, your umbrella policy protects you from the perils that could damage your financial situation. 

Umbrella insurance is extra liability coverage that you can add to another insurance policy with liability coverage. Umbrella insurance is not a stand-alone policy; it raises the liability limit on your primary policy. Many policies have liability coverage, such as home, auto, boat condo, rental, and motorcycle insurance. 

When there is an accident, and you are responsible, or you or a family member injures someone, there can be a lot of costs involved. Your liability coverage on your primary policy will pay up to its limit, and then the umbrella policy will kick in. It can pay for medical expenses, property damage, legal fees, and a judgment against you. Most umbrella policies begin at around a million dollars. 

No matter what your assets are like, small or large, you can still benefit from an umbrella policy. You don’t have to be wealthy to need umbrella insurance; it protects anyone with any amount of wealth. 

At Steiner Insurance Group in Nashville, NC, we are here to help you decide if umbrella insurance is right for you. Give us a call to make an appointment today.