Should I Buy An Umbrella Policy?

An umbrella policy will allow automobile owners and homeowners to purchase additional liability protection. With an Umbrella policy--also known as a Personal Liability Policy--you may increase your coverage to protect your assets for both your home and auto with a single policy.

Usually a minimum of coverage is required on both your home and auto policies. For example, you may be required to purchase $250,000 in liability protection on your auto policy and $300,000 on your home policy in order to purchase an umbrella policy. An additional $1 million would bring your liability protection totals to $1,250,000 and $1,300,000 respectively.

If you have assets greater than your base auto and home liability limits, you should consider the Umbrella policy. Remember to consider the value of your home and your retirement funds. They may be at risk if you are sued for an auto accident or an accident at your home. Dog and pool owners are good candidates for lawsuits.