Personal umbrella insurance is additional protection that an individual may purchase in case he gets involved in an incident wherein he causes other people to suffer damages, even unintentionally.
There are many different kinds of insurance policies, each one usually having a specific purpose. For example, anyone who has a car has auto insurance that will take care of the costs in case one gets into an accident. Homeowners also have insurance that will deal with costs regarding issues with the property. However, these insurance policies may have limited coverage, and if something happens to other people and it is your fault, you may be liable to pay them for damages incurred. Your auto insurance and home insurance may not cover the total cost, and if this happens, you are obligated to pay the damages. If the damages are high, you might even have to give up your personal assets to cover the costs.
This is where personal umbrella insurance comes in - it takes care of the costs when all your other basic insurance policies have been used up. Also called personal liability insurance, this policy is very useful when you find yourself facing a lawsuit. If you are slapped with a lawsuit and the claimant wins, a personal umbrella insurance policy will help defray the costs of the reward, legal fees, and court fees.
There are many variations of personal umbrella insurance policies that you may purchase. However, purchasing such policies may only be worth it if you have a considerable amount of assets. If you have few assets, then there is not much to protect, and having a personal umbrella insurance policy might just attract lawsuits.