What is a personal umbrella liability policy?
This is an insurance contract designed to accomplish two goals. First, it increases liability protection beyond what you have in your homeowners and automobile insurance policies. Second, it aims to fill in gaps in your liability coverage since some things are simply not covered by automobile and homeowners policies – for example, libel and slander. Together with homeowners and automobile insurance policies, a personal umbrella policy gives you the highest level of protection.
How do I know if I need a personal umbrella liability policy?
In the past, the people who purchased personal umbrella liability policies were wealthy, with sizable amounts of personal assets that would be at risk in a lawsuit. However, our society has become more litigious, and many people desire more liability insurance than what is provided under their homeowners and automobile insurance policies. How much protection you want against potential lawsuits is a choice you should make based on your personal circumstances and what you need to feel comfortably protected.