I’ve described in detail previously explaining umbrella policies. For a quick refresher – jump here and then come back. Today I specifically want to point out a couple reasons why you most likely do need one and didn’t even realize it.
Your auto insurance has a maximum payout.
When you purchase insurance, you’re purchasing a limit. For example, if your liability limits are $100,000 per person, then the maximum paid out for any one person is $100,000. If the person incurs a loss greater than that amount, you are still liable for the additional expense. Examples include life flight, hospital stay, surgery, therapy, medicine, loss of work, pain and suffering, etc. It is possible you will be sued for the amount over what the policy covered and paid on your behalf.
You have more assets than you realize.

Being very conservative, let’s consider you own a $150,000 home and two vehicles worth $10,000 each. That alone is $170,000. Once you factor in your bank accounts, 401K, IRA, or other retirement plan that number jumps up significantly. If you own any other assets like a boat, four-wheeler, rental properties, or business property, then you definitely have a large exposure.
Umbrella policies are affordable.
Umbrella policies are sold in $1 million, $2 million, and $5 million increments. However, they are surprisingly affordable protection to purchase. No one wants to experience financial ruin in the middle of an accidental loss. Purchasing an umbrella is a great way to lessen your risk of personal exposure over not just your auto liability, but over your home liability as well. Ask me for more details and a quote!