Personal Umbrella Insurance, also known as personal liability insurance, can be a good idea if you have assets to protect or participate in activities that increase your liability risk:
- Assets – If you have significant assets, such as own a home or other real estate, investment accounts, or savings, you should consider a personal umbrella insurance policy.
- Activities – If you have things that increase your liability risk, such as owning a dog, coaching kids’ sports, or having a swimming pool, you may want to consider umbrella insurance.
- Net worth – If you own a home or auto, have a net worth of $500,000 or more, or have young drivers on your auto insurance policy, it is recommended you consider umbrella insurance.
- Litigation – Even if you’re careful, it’s best to carry umbrella insurance in today’s litigious society.
Personal Umbrella Insurance provides extra protection on top of your home and auto policies. It can cover damages and injuries you cause that exceed the limits of your other policies. For example, if you’re at fault in a car accident that injures several people, your auto policy may only pay up to a certain amount, and your umbrella policy could pay the rest.
You can talk with an insurance agent to determine if an umbrella policy is right for you.
