How much umbrella insurance should property owners buy?

Homeowners, asset owners, and property owners require an extra layer of liability which often comes in the form of umbrella insurance. The policy helps cover lawsuits from tenants, clients, and other business people involved in your business. Being a landlord in Stamford, CT requires you to have adequate protection for your rental properties to avoid losing your investments. Allkane Insurance recommends buying commercial umbrella insurance on top of your general liability insurance as a backup. If you’re not sure how much umbrella insurance to buy. Read on to find out!

The number and size of your property

As a landlord, you probably have a vast amount of assets to protect. The higher your net worth, the costlier the lawsuit. A small slip or trip in your rental property can easily cause you to lose the entire property and sometimes other properties. We recommend calculating the value of each property and buying umbrella insurance that is equivalent to that value. Umbrella insurance is not costly as it cannot be used independently but offers a lot of cushion in case of an incident that could lead to a lawsuit.

The amount of liability in other insurance policies

For umbrella insurance to work, you must have other policies with liability coverage. When these policies are used and depleted, umbrella insurance can kick in and offset the remaining amount.  For instance, if you are sued for broken lighting on your rental property that led to several injuries, your general liability insurance will be used to pay the legal fees. If not enough, umbrella insurance will come in and pay the rest. If you don’t have enough liability in other policies, you may want to increase your umbrella insurance for additional protection. Assess how much you need and make sure your umbrella insurance reflects that amount.

Need umbrella insurance to protect your Stamford, CT properties? Allkane Insurance can help you find a policy to take care of all your liability needs. Call us today!