Personal Liability Umbrella insurance is a type of insurance that will supplement your basic liability policies, such as home and auto. An umbrella policy will provide a higher limit or excess liability to protect you from property liability claims and bodily injury liability claims. Umbrella policies offer a broader form of coverage that can help cover legal fees, libel, slander, and false arrest. The main purpose of your umbrella policy is to protect your assets from an unforeseen event like a tragic accident that you are responsible for. Your umbrella policy will cover the damages that you are legally responsible for up to the policy limit.
Your investments, retirement accounts, house, car, checking/savings, even your future income are considered assets. It is important to know that if you are sued for a large sum of money and do not have enough liability insurance to cover those costs then all your assets are at risk. Clients usually choose to purchase an umbrella policy because they want to prevent the possibility of financial ruin due to one unfortunate misstep or unforeseen accident. Umbrella protection can provide the reassurance one needs.