When Do I Need Umbrella Insurance?
What is umbrella insurance exactly? I overheard someone saying that umbrella insurance covers everything. That isn’t entirely true. What umbrella insurance covers is personal liability. It does cover most all personal liability, so I suppose in a way it covers, “everything.” Liability Insurance Most people already have some liability insurance. Your car insurance, for example, has liability insurance for anything you become liable for while driving a car. Most auto insurance coverage is specified by three numbers like 100/300/100. The first number is your liability coverage limit per person per accident. The second number is the total liability coverage per accident for all persons. The third number is the liability limit for property damage for each accident. Of course, this liability coverage only involves things that happen while you are operating a covered vehicle. Homeowners typically have some liability coverage through their homeowners insurance policy. This liability covers a lot more ground (but NOT when you are driving a car). Anything that happens on your property is covered. So, if someone trips and hurts themselves on your driveway, that liability would be covered. This coverage is also limited to a specific dollar amount depending upon your policy. An amount like …