One of the most important insurance policies you can buy is the personal umbrella policy. This policy provides high limits of liability to protect you  against a catastrophic liability loss. For example, a major car accident may injure numerous people or cause head injuries or death that will result in liability far in excess of the limits typically purchased in a personal auto policy. An umbrella policy sits on top of the auto and homeowners policies to provide higher limits of protection. In addition to providing higher limits, this policy normally pays for some losses not covered by the underlying policy, such as allegations concerning libel or slander.

In particular, you should have a personal umbrella policy if you have certain characteristics or engage in certain activities, including the following.

  • Your total assets are greater than their underlying liability limits.
  • Your are financially responsible for the actions of a young, inexperienced driver.
  • You live in an exclusive and affluent neighborhood.
  • You have a high profile career or high income.
  • You frequently host guests on your property.
  • Your residence includes a swimming pool.
  • You own waterfront property, a farm, or a ranch.
  • You own watercraft, aircraft, or off-road vehicles.
  • You own numerous rental properties.
  • You engage in extensive international travel for pleasure.

Click here for more details about the personal insurance coverages available to you.