Umbrella coverage provides an additional layer of Liability coverage over and above the  Personal Liability coverages you already have for your home, autos and any other Personal liability exposure you may have.  While these underlying policies can protect you from most liability examples, situations can arise where your liability exceeds the limits provided by your basic policies. 


People buy personal Umbrella policies to protect their assets against these potential major liability claims and the associated defense costs.  In the past, only the relatively wealthy

purchased Umbrella policies, but today most middle-class insurance buyers include them as part of their financial planning.    


Umbrella policies are relatively inexpensive and are typically obtained in increments of $1,000,000.  While there is no good formula to determine whether you should buy Umbrella coverage, the more assets you own, the more reason to consider Umbrella coverage.