You probably have insurance on your home, car, or rental property. However, an umbrella policy is a secondary type of liability insurance and is often recommended for additional coverage needs beyond the standard policy. In fact, it may even provide extra coverage for your home and car. So, when do you need a personal umbrella insurance policy, and is it necessary?

To Cover or Not to Cover, That is The Question

So, what is personal umbrella insurance? An umbrella policy offers extra protection against lawsuits and claims that may arise due to unexpected circumstances. This may not be news to you, but we live in a society with individuals willing to sue or take legal action if certain specifications are met in a variety of scenarios. Yet, homeowners and auto insurance policies have a limit to available liability insurance.

If something unforeseen happens, do you have enough liability insurance available to cover damages or injuries? If your answer is no, then you may consider an additional umbrella policy to offset accrued expenses due to injury, damage, or lost wages.

How a Personal Umbrella Insurance Policy Works

If you want to ensure your assets are protected against potential lawsuits due to property damage or injury, insurance brokers and agents recommend an additional umbrella policy. It can provide extra liability coverage beyond your traditional home or car insurance, so your assets are safe. You can even select the amount of coverage you’d like and what you can afford with your policy.