Personal Umbrella Insurance 101
An umbrella insurance policy provides additional liability coverage over and above coverage you carry on your personal insurance policies covering cars, homes, boats, etc. Most of these basic policies only provide lawsuit coverage of $300,000 or $500,000 per accident. Yet, if you injure someone seriously, you can blow those limits just in medical bills and/or lost wages. If a judgment is rendered against you for more than your coverage, you will end up paying any excess amount out of your assets and/or future income.