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.
