If your liability coverage isnt enough to cover the damages of an accident or an incident on your property a personal umbrella insurance policy kicks in when your other liability underlying.

Do you need a personal umbrella policy. Once you buy a home or begin to build significant assets it is something you should consider doing. Umbrella insurance is a secondary type of liability insurance covering your liability above and beyond the standard liability you have taken on your homeowners insurance policy. First if you dont know what a personal umbrella policy is it basically provides excess coverage should the liability limits on your personal auto andor homeowners policy be used up.

Who Needs an Umbrella Liability Policy. You accidentally injure someone. In some cases it may even provide coverage for losses that are not covered by your existing insurance.

Most people in their twenties do not need umbrella insurance. This extra policy could help protect your bank account home and other personal property. This is where clients can confuse a personal umbrella insurance policy with an excess liability insurance policy.

You can purchase umbrella insurance through your insurance agent at the same time. If you or a family. An auto insurance policy would pay for the property damage first followed by an umbrella policy.

Sometimes known as excess liability or personal liability insurance umbrella insurance doesnt stand alone. It protects you above and beyond the limits on your homeowners or condo insurance car insurance watercraft or other personal insurance policies and offers added liability protection for lawsuits or claims youre found. Personal umbrella insurance is an insurance policy that provides liability coverage beyond the limits of your existing auto home or boat policy.

You may never need to use it but the one time you do it could potentially save your life. In fact these policies apply anywhere in the world whereas most underlying policies are limited in their territory and only apply to occurrences within the US. As long as you can earn a livelihood you should have an umbrella liability policysays Mitch Freedman a CPA and personal financial specialist in Westlake Village Cal.