Umbrella insurance gives you added liability coverage for lawsuits, and claims that rise against you. It is an inexpensive way to protect your financial future or established assets. Depending on how much umbrella liability coverage you decide to purchase, it could cost as little as $100 a year for 1 million dollars of coverage.
Your umbrella coverage kicks in when your liability coverage is not enough. It protects you from possible legal costs for damage to other people’s property or injury. Lawsuits are everywhere and lawyers are awarding larger amounts of money than ever! Your homeowner and auto policies have liability limits and if you get sued for more than that, you are responsible and can lose all your assets. An umbrella policy protects you from this.
If you get sued you could lose any assets you have built up, including investments and all of your savings. The wealthy are at risk but so are those who have no assets. When you have no assets, you may be obligated to pay off the damages awarded with your future earnings!