Sometimes the liability limits on your homeowners or auto policy may not be sufficient to protect you in the event of a loss. Also, there may be liability coverage gaps for exposures not covered under your homeowners or auto policies. It only takes one claim to devastate your financial stability. The personal umbrella policy will supplement your basic policies and ensure that you protect yourself and your family. . It provides excess liability protection over your primary auto and homeowners liability limits.
It used to be that the only people who needed umbrella policies were wealthy individuals with significant personal assets that would be at risk in a lawsuit. Those days are gone. In our litigious society, people are recognizing the need for additional liability coverage above their homeowners and auto insurance policy limits. Policies are typically issued in $1 million, $2 million or $5 million dollar limits or more. Umbrella policies are inexpensive since the odds of such a loss are low, however; the peace of mind an umbrella can provide is priceless. A very small investment in insurance can protect you against the unthinkable.