Think of this as an extra layer of protection, offering $1 million to $5 million in affordable, additional insurance that protects you in the event of major claims and lawsuits. It supplements your basic liability policies that are included on your auto and home policies.
Who needs it? Almost everyone – it protects not only assets but future earnings. No one expects to be sued. But if you are held legally liable for certain injuries or property damage, an umbrella policy will be there to assist with paying the settlement you are held responsible for.
Landowners, in particular, should consider this option – with recent area land values rising to $10,000 per acre, it may take a multi-million dollar umbrella policy to ensure you retain your land.
This is also a key tool for parents of young drivers. The split-second decisions of an inexperienced driver can ultimately affect you financially, as parents can be held liable for the actions of their dependents.