In 2004, MTV launched Pimp My Ride, wherein basic cars were gussied up or ‘pimped out’. Hosted by the rapper Xzibit, the show ran for three years, giving us the ultimate vehicular glow-ups. Who doesn’t love a makeover?
The same can be said of insurance, sort of (OK fine we just wanted to talk about Pimp My Ride). But it is true that standard insurance policies won’t always work for every situation you find yourself in. Sometimes, what you actually need is an umbrella policy, which will protect you from potential financial damages when you, the policyholder, are found responsible for a particular event.
Umbrella insurance saves you from out-of-pocket expenses and provides coverage when your standard policy reaches its dollar limit. That’s why it’s also called an excess liability policy.
You can get umbrella policies for your home, business — just about anything you can dream up! As Xzibit and his pals knew, sometimes the standard just needs a little love.
The Golden Gauge: Umbrella Insurance Rule of Thumb Explained
Of course, the big question everyone wants help answering is how much coverage they should get when they purchase an umbrella insurance policy. Any agent worth their salt should tell you that umbrella policy limits should equal or just exceed your entire net worth. That way, at least theoretically, your assets are secure no matter what.
Unfortunately, you can sometimes be sued for more than you have. We’ve all seen TV lawyers go after future earnings. So to rest easy, here are some factors that can help you determine what sort of umbrella policy to get:
- Limits of underlying liability: Consider how much your current car insurance or homeowners insurance policy covers. Knowing the existing policy’s limits will help you figure out what you need to tack on to cover the rest of your assets.
- Net worth: Calculating your total net worth is essential to selecting an umbrella policy.
- Risk exposure: Do you lead a risky life (we see you bungee jumping!) or do you have a high-risk career? That will play into the liability coverage you might need.
- Future income: Planning to buy another property or looking at a major promotion within the year? Factor this into your needed umbrella insurance policy limits.
When it comes to umbrella insurance, one size does *not* fit all, and that’s okay! If you work from home and like nothing more than cozying up on your couch with a movie, you may need less coverage than someone who owns, say, a nightclub. Talk to your provider for more help zeroing in on the right coverage amount — they’re there to help!
Let Marble Guide You to the Right Coverage
While we can’t promise that your umbrella policy will cover every eventuality, Marble can help you make smart decisions based on your circ*mstances and budget. Some have even called us the Xzibit of insurance. Compare insurance policies and premiums so that you can determine how much umbrella coverage you need. And once you’ve decided, you can store all your paperwork in one digital account with Marble. Sign up today!
