The minimum amount of coverage for an umbrella is one million dollars
and can go up to ten million. The most common amount of coverage is one million
but many choose two million dollars or more. A rough estimate of what it costs
for the first million is about $200 to $250 a year but can be higher is you
have more than two cars, own a pool, have young drivers or points on your
The more coverage you have, the more bullet proof you are if you become
liable for a catastrophic incident. One of the best aspects of this coverage is
that it’s very inexpensive. When considering an umbrella policy, it’s important
not to cut corners. Shortcuts cannot be afforded when all accumulated assets
from an entire lifetime are in questions. To some, it is enough for them to
purchase enough coverage for whatever their net worth is but settlements and
judgments can go beyond someone assets because damages are never limited to
someone’s net worth.
It’s also important to protect future wages from garnishment. The
future income of an individual who doesn’t have ample coverage can also be
jeopardized. Although one million may appear to be more than enough coverage,
the total cost of liability claims can increase quickly.
It’s important to consider what amount would be acceptable for various
conditions. For example, ask yourself how much you would settle for if you were
paralyzed and unable to work the rest of your life.
Anyone who has something to lose should have at the very minimum a two
million dollar umbrella, but if you really have a lot to lose and don’t want to
gamble with your life’s wealth, your options are at least a five million dollar
policy, if not more. The coverage you get should be discussed with your agent
and even a personal injury attorney if you desire.
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