Many renters in New York think that they don’t need umbrella insurance because they don’t own their home. However, this type of coverage can protect you from financial ruin as it aids costs should a lawsuit arise. It sits above a renter’s insurance policy and so it is perfectly suited for those who do not own a home yet.
Anyone who rents or leases an apartment or house should have umbrella insurance added on top of their renter’s insurance. You should add up your “exposures” when deciding whether to get an umbrella when you’re renting. Any renters who hunt, golf, or have a swimming pool or dog should consider umbrella insurance. The more exposures you have, the more the likelihood of something catastrophic happening.
The amount of protection that you should attain depends upon these exposures as well as your current assets and potential net worth. The cost of the first $1 million in coverage may run about $300 per year, but the rate will drop for the next $1 million in coverage, which may cost an additional $100 per year. As a rule of thumb, always price higher coverage than than you think you can afford.