Should you purchase an umbrella liability policy?
If you are ever sued, your standard homeowners or auto policy will provide you some liability coverage, paying for judgments against you and your attorney fees, up to a limit set in the policy. However, in our litigious (i.e., lawsuit happy) society, you may want to have an extra layer of liability protection. That’s what a personal umbrella liability policy provides.
An umbrella policy “kicks in” when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.