An umbrella policy provides an extra layer of liability protection above your home, auto, motorcycle, motorhome, watercraft, and recreational vehicle insurance coverage. Umbrellas kick in after the liability insurance in your primary policy is exhausted.
Why should you carry umbrella coverage?
Liability insurance pays for expenses related to legal fees, medical expenses, and lost wages as the result of negligence. Typically, a personal liability umbrella policy is inexpensive compared to the amount of protection it provides. For as little as $150 per year, you can get $1 million additional coverage under an umbrella policy.
Be aware, there are some restrictions on what an umbrella policy may cover, such as claims related to a business and intentional acts. Minimum amounts of coverage should be met on home and auto policies before an umbrella policy is issued, but the extra coverage is important if you have assets you need to protect.
Some companies will offer a discount on your underlying home and auto policies if you take out an umbrella policy.