How do I know if I have enough insurance to cover all of my assets of over $1 million?

"I have had a lot of big life changes lately: a new home, new job, etc., and I have started to wonder if I have enough insurance. My assets total a little over $1 million.

How much coverage should I have for auto or home insurance to make sure I am protected in the event of a lawsuit? "

Answer
“Every situation is different and it can be hard to plan for the unknown. In general, your insurance coverage should grow and change along with your life. If reasonable, it is a good idea to have liability limits that equal or slightly exceed your total assets.
It sounds like an umbrella policy will work well for you! An umbrella policy extends the liability coverage above and beyond your standard auto and homeowners insurance. The coverage usually is available in $1 million, $2 million, and $5 million policies.
To be eligible for an umbrella policy, your current car and homeowners policies need to have liability coverage limits of $300,000. Once this is established, you can reach out to any number of large carriers like Progressive, Allstate, or Liberty Mutual for the additional umbrella policy. “
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Shannon Martin
Answered on May 12, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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