A personal umbrella policy is a key part of your insurance protection. Personal umbrellas are additional policies that can provide extra liability protection over and above what your underlying policies cover you for. You can purchase these policies in $1 Million dollar increments.
If you have autos and a home, the umbrella policy would give you additional liability protection over what your auto and home insurance policies cover. For example, should a large liability claim be made on one of your underlying policies, and the underlying limits were not sufficient, an umbrella policy could provide additional coverage and protection. Without an umbrella policy in this case, the insured could be left paying the difference out of pocket.
Personal umbrella policies are relatively inexpensive, and can provide much needed additional coverage should a claim arise that exceeds your underlying liability limits. It is important to periodically review your umbrella policy to ensure it lists the correct vehicles and properties.