Umbrella policy coverage

[Steve Velez]

I have a few investment properties in my personal name in addition to my own personal assets (home.,car, etc). I wanted to purchase an umbrella insurance policy but I'm not sure how to go about calculating the right coverage amount I need. I have insurance on my personal assets but given my existing investment properties and that i will continue to grow my portfolio im looking for thoughts from the BP community

[John Mocker]

Steve,

I don't know of any way to calculate an appropriate limit.  There is no limit to what a court can award in a Judgement so there is no way to fully cover yourself.  That being said, you can probably find statistics on average Judgements.

I tend to look at first the amount of exposure (# of properties, # of autos, young drivers, boats, motorcycles, etc.) first and then amount of assets at risk (how much equity in the properties, investments, etc.) to make a recommendation.  Also, I tend to quote multiple limits for the Umbrella policies so the client can assess cost vs benefit.  

If you have any questions on the above or would like more details feel free to PM me.