There’s more than a few people that think an umbrella is only for a rainy day. Insurance wise, if you need an umbrella, it ended up being far worse than a rainy day; it’s a catastrophic day that can cause financial ruin. That’s where an umbrella policy for your insurer comes in. It comes in million dollar increments and adds additional liability coverage over your home and auto coverage. Additionally, a good umbrella offers broader coverage that your home and auto like personal injury protection (i.e. libel, slander, invasion of privacy, etc.). You’re a great candidate for an umbrella if you have good income or asset levels in excess of your auto/home liability limits, or you have children. If something bad were to happen to someone’s child when they were over playing, all bets are off as to how much liability you could have and how far the other parent(s) will push it. Coverage is typically inexpensive (~$125-250/yr.) depending on your household characteristics and is a great way to protect your assets and give your attorneys the financial wherewithal to negotiate a settlement.
It’s surprising that 30 years ago a million umbrella was the most common umbrella and that’s still true today. However, due to large jury awards, umbrellas are needed more often than ever. Many people don’t realize that a lot of O.J. Simpson’s and Bill Clinton’s legal costs were paid by their umbrella policies.