Liability Coverage Protects your Assets

Most policies come with $100,000 to $300,000 of liability coverage, but unless you have less than that in assets you should buy more. You can make a quick estimate of your net worth by adding these elements: 1) Your salary, 2) The value of the equity in your home (estimated market value minus what's left on your mortgage), 3) Your investments, 4) The value of any real assets (jewelry, art, land etc.) and 5) The value of your business, if you have one. Then subtract any other debts, such as credit card balances or student loans.

If the total tops $300,000, you should consider buying an umbrella liability policy. These sit above both your auto and homeowners policies to augment whatever levels of liability coverage you elected in those cases. Oddly, umbrellas also cover you if you are sued for libel, slander or defamation of character. A good strategy is to raise the liability coverage of both your homeowners and your auto policy to $300,000. Then buy a $1 million umbrella policy (or enough to cover your assets). It doesn't cost that much -- $200 to $300 should do it -- because the coverage only kicks in after you've exhausted the $300,000 liability limits in the other policies

If you have insurance questions please call Lester Robinson at 1-800-836-2040 or e-mail at lrobinson@thenorthwoodscorp.com

For a quote on your Auto and Home Insurance call Lester Robinson at 1-800-836-2040 ext. 3014 or go to website at www.wnyinsurance-quote.com

Lester J. Robinson III, FICF, CC

Insurance Broker

The Northwoods Corp.

8810 Main Street

Williamsville, NY 14221

Phone: (716) 626-0004 Ext. 3014

Fax: (716) 626-5057 Att: Lester

lrobinson@thenorthwoodscorp.com

See “the ABC’s of Insurance” TV show on Time Warner Cable in Western New York hosted by: Lester Robinson