Quite simply, umbrella insurance is extra insurance that provides additional coverage beyond the existing limits on your standard homeowner, auto, or boat policies.
Let’s suppose you cause a car accident and are sued for damages to the tune of $500,000. If your auto insurance has a $100,000 policy limit, you would be responsible for the remaining $400,000 out of pocket. Ouch. That kind of hit could result in garnished wages and liens on your property for many years to come.
Adding an umbrella policy to your insurance mix is the best and most inexpensive way to make sure that your assets and future are properly protected. Umbrella policies start at less than $20 a month. Talk to your agent to see if umbrella coverage makes sense for you.