Protecting Your Net Worth With Personal Umbrella Insurance

Part of protecting yourself, your family, and those who are dear to you, is protecting your personal net worth. Work with your agent at Saucon Insurance Agency serving Bethlehem, PA and the surrounding area on financial planning that includes personal umbrella insurance.

What is your net worth?

If you add up all the things you owe and deduct this total amount of debt from the value of all the things you owe, this is your net worth. Be sure to consider the current value of assets not what you paid for them, especially if the asset appreciated in value.

Here is how to figure out your net worth:

  1. Add up the following, the remaining balance on your mortgage loan(s), all your outstanding credit card debts, the balance remaining on auto loans and any other loans that you have. These are your total liabilities.
  2. Add up the net value of every asset that you have, such as the amount of the appraised value of your real estate that exceeds the balance on the mortgage loan. If a home is worth $1 million and you still owe $600,000 on the home loan; the net value of this asset is $400,000. Do this same calculation for every asset and then add all the net values together. These are your total assets.
  3. Subtract your total liabilities from your total assets. This is your net worth.

Usually, your net worth is the figure used to set the minimum amount of personal umbrella insurance, which you should carry to be adequately insured. Umbrella insurance extends the policy limits of other policies and may provide extra coverage for some things that are not covered otherwise. The strategy is to have personal umbrella insurance that provides sufficient protection for your net worth in the face of a big claim against you.

Umbrella Insurance for Negative Net Worth

What if you owe more than all your assets are worth? This is a negative net worth. It is still a wise strategy to carry umbrella insurance because even when you have no positive net worth, you can be sued and a judgment may be entered against you that can become a lien on anything you try to do in the future.


Protecting your net worth with personal umbrella insurance is a valuable strategy. As a general rule, you want to carry at least the amount of your net worth as personal umbrella insurance. If you might be sued for a larger amount, you may want to have even more coverage. Consult with your agent at Saucon Insurance Agency in Bethlehem, PA to discuss these issues and to get a quote for umbrella insurance.

Pennsylvania Motorcycle Laws: What You Need to Know

Whether you’ve just got your first bike or you’re a veteran on the Bethlehem, PA area roads, it’s important to know the laws that govern motorcycle use in the state of Pennsylvania. This short review of state laws from Saucon Insurance Agency will help you stay safe and legal while you enjoy your motorcycle.

  • All motorcycle drivers are required to have a Class M license. This allows them to legally operate motorcycles on Pennsylvania roadways. The first step to obtaining this license is passing the written knowledge test. This tests your understanding of roadway laws as it relates to motorcycle operations.
  • Upon successful completion of the written test, drivers can apply for a motorcycle learner’s permit. With this permit, you are allowed to operate your motorcycle in order to practice for the skills test. However, this credential restricts passengers to only properly licensed instructors. These documents are valid for one year. During that time, the licensee is expected to accumulate practical experience and knowledge.
  • Drivers over the age of 18 don’t have to wait to take the final skills test. However, those under the age of 18 are required to hold their permits for at least 6 months. During that time, they must accumulate at 65 hours of verified and supervised riding experience. The completion of a mandatory Pennsylvania Motorcycle Safety Program Basic Rider Course counts for 15 of those 65 hours.
  • If your vehicle has more than two wheels, you may have to search around to find an office to accommodate your testing.

Like all licensed Pennsylvania drivers, motorcycle enthusiasts are required to maintain insurance on their vehicles. Talk to the experts at Saucon Insurance Agency to find the right motorcycle insurance coverage for your Bethlehem, PA lifestyle.