Personal Umbrella InsuranceAt one time, it was thought that the only people who need an umbrella policy were the very wealthy. Not anymore. You don't have to be a multi-millionaire to get sued like one.
Your standard Homeowners or Automobile policy will provide you with some liability coverage (up to the liability stated in the policy), but it may not be enough.
Umbrella insurance kicks in when you reach the limits on your underlying liability coverage in a Homeowners, Renters, Condo or Auto policy.
A typical Umbrella policy provides $1 million of liability coverage for about $150-$200 per year. Additional limits in $1 million increments may also be purchased.
Basics of Umbrella Insurance