Is it worth getting an umbrella insurance policy?
Is umbrella insurance worth it? If you have significant assets, it's worth getting an umbrella policy. The liability insurance within your auto and homeowners insurance policies might not be sufficient if you get sued for an incident such as dog bite, car accident or accidental injury to someone else.
Why would you want an umbrella policy?
An umbrella policy protects your existing personal assets and future personal assets (like wages, your inheritance, or that lottery you're planning to win) against the cost of losing a lawsuit over a car accident or an accident on your property.
How much is $1 million umbrella policy?
Umbrella insurance is actually very inexpensive. A $1 million umbrella policy only costs around $150–300 a year. And if you want to bump your coverage up to $2 million, you'll only pay an extra $75 per year. In fact, for each $1 million in coverage you add, you'll only pay an extra $50 a year on average.
How much should you have in umbrella policy?
The amount of your umbrella insurance policy should match your entire net worth. So if your assets stand at $1 million, bingo. That's how much umbrella insurance you need.