An introduction to umbrella insurance calculator
First, you need to think of reasons why you need to get umbrella insurance. Next thing will be to think of the properties, assets, and accounts that you own. At this point, you need to determine how much is at stake and how much protection you need to not expose the parts that are not covered. Not only that, the potential future acquisition should be thought of as well.
How to use umbrella insurance calculator?
Get the sum of your Condominium or home equity, personal property (could be vacant lots, another house, etc.), investments, savings and your future wages. The total number is the total amount of your assets at risk.
The next step is to get the sum of your auto insurance liability limit and your current umbrella insurance limit then deduct the total amount of your assets at risk (the first summary you calculated). If you got a negative number then you have a liability gap.
If you have personal liability coverage for your home/condominium /renter add your limit to your personal umbrella limit then minus the risk limit of your total assets.
If you still have a negative number, that only means that your liability coverage is not enough to protect what you currently have. It’s now about time to get a quote and get an umbrella insurance. It’s also best to bear in mind that umbrella insurance is not just all about your current wages, savings, and assets but it’s also designed to protect your future wages and assets. In other words, the total amount of your properties, savings, and wages at stake should not be the amount in point but instead, add up an amount for your future wages, assets, and savings. You might not think you need it now but it’s always best to prepare when it’s still not there then feel sorry and regret not having it when you need it.