Umbrella liability is named this because it acts as an umbrella over and above your personal auto and homeowner liability limits and provides “extra” protection. In extending coverage over these policies an umbrella policy helps protect against lawsuits resulting from damage to someone else’s property or injuries as the result of an accident.
When it comes to liability exposures and lawsuits these days we have to expect the unexpected and properly protect ourselves. A slip and fall injury on your property, a child in your neighborhood injured on your property, your dog bites someone, a severe or fatal accident you cause – these lawsuits are becoming more and more common these days and the juries rewards are expensive to the plaintiffs.
This policy protects your assets against such lawsuits and you need not have to be “wealthy” if you simply own a home this policy is for you. Typical available liability limits range from $1 to $10 million depending on how much asset protection you may need.