Personal umbrella insurance is valuable coverage, but it is not required. An umbrella policy can protect the insureds on existing liability policies. Without umbrella coverage, you’re liable to pay additional expenses if those expenses exceed the policy limits making your personal assets including your house, vehicle, financial and retirement accounts and any future income vulnerable.
Generally, it’s recommended that you purchase umbrella insurance if there’s the likelihood that you might be sued—which could be anyone. Therefore, because coverage is relatively inexpensive, it may be a worthwhile policy to have for peace of mind.