Umbrella insurance is a type of insurance policy that extends the personal liability coverage you probably already have through your homeowners or auto insurance. In other words, it’s a policy that helps protect your assets if you ever get sued for a whole lot of money.
Although most people won’t face a multi-million dollar lawsuit in their lifetimes, if you are the unlucky exception, an umbrella policy can help you avoid financial ruin. This is a relatively affordable kind of insurance coverage, too, although there are some additional costs it can require, which we’ll get into below.
Here’s what you need to know about umbrella insurance and how to decide if it’s right for you.
What is Umbrella Insurance?
Certain types of insurance include liability coverage, which is insurance coverage that protects your finances and assets in case you get sued. You likely already have this kind of coverage, to some extent, through your homeowners or car insurance policy. sofi.com