Umbrella Insurance

 Umbrella insurance extends liability protection on top of your existing policies. It typically covers:

• Bodily Injury Liability: Medical bills and legal costs if someone is injured in an accident where you’re found at fault.
   
• Property Damage Liability: Costs if you damage someone else’s property.
   
• Personal Liability: Protection in cases like libel, slander, or false arrest claims.
   
• Legal Defense Costs: Attorney fees and court costs, even if a lawsuit is groundless.
   

 You may need it if:

• You own property or significant assets.
   
• You have a high income or future earnings to protect.
   
• You host gatherings where accidents could happen.
   
• You want extra peace of mind against lawsuits that could exceed your standard coverage.

 Policies typically start at $1 million in coverage, with options to increase in $1 million increments. The right amount depends on your total assets and potential risks. Many financial experts recommend having coverage equal to or greater than your net worth. 

Umbrella insurance doesn’t cover:

• Your own injuries or property damage.
   
• Business-related claims (you’d need business liability insurance).
   
• Liability you accept through contracts.
   
• Damage from intentional or criminal acts.

 Umbrella insurance is surprisingly affordable—often less than $1 per day for $1 million in coverage. Premiums vary based on your risk factors, number of homes or vehicles, and coverage amount. 

 No, it’s optional. But it’s a smart choice for anyone who wants to protect their savings and future from unexpected lawsuits or large liability claims.