How To Determine How Much Umbrella Insurance You Need

How do I determine how much umbrella insurance I need?

Umbrella policies are fairly standard. Under your homeowner's insurance policy, there's usually an underlying liability limit. It could be $50,000 or $100,000. If someone should sue you, if they're injured or their personal property is damaged because of something you did or failed to do. Umbrella liability can provide anywhere from $1,000,000 to $5,000,000, or more of additional liability coverage to pay for your legal bills, or damages that are assessed against you. It's something you need to negotiate with your insurance agent, but my advice would be the more personal assets you have, the wealthier you are, the more umbrella liability you need. People tend to go after deeper pockets. If they go after a friend or a neighbor that doesn't have much, they're not going to necessarily sue for $10 million, but if you're wealthy, they're more likely to ask for more, so it's good to have umbrella policies.