Unfortunately, accidents happen. And when they do, the victim usually tries to blame someone else.
However, if you are found liable for causing serious injury, the sky-high cost of medical treatment and other claims, such as negligence, could quickly exhaust the coverage limits on these policies. Once your policy pays its limits, any remaining liability costs become your responsibility. That’s where umbrella coverage kicks in.
The typical umbrella liability policy can provide an extra $1-2 million in additional liability protection for only hundreds of dollars a year. You can buy policies with higher limits if needed; generally, the more assets you have to protect, the more coverage you need.