Do I Need Umbrella Insurance?

Short Answer

Umbrella insurance isn’t required—but it is highly recommended if you want to protect your assets and future income from large liability claims or lawsuits.

What Is Umbrella Insurance?

Umbrella insurance is extra liability coverage that sits on top of your existing policies, such as:

Homeowners insurance
Auto insurance

It helps cover legal fees, medical costs, and damages if a claim exceeds the limits of those underlying policies.

What Does Umbrella Insurance Cover?

An umbrella policy can provide additional protection for:

Lawsuits resulting from accidents
Injuries that occur on your property
Auto accidents where you are at fault
Legal defense costs

This added layer of protection can be crucial in situations where damages are significant.

Who Should Consider Umbrella Insurance?

Umbrella insurance is especially important if you have:

Rental properties
Significant assets (home equity, savings, investments)
High future earning potential
Higher-risk exposures such as:
Swimming pools
Trampolines
Dogs

If any of these apply to you, your risk of being involved in a costly liability claim may be higher.

Why Umbrella Insurance Matters

Without umbrella coverage, you could be responsible for paying out-of-pocket for anything that exceeds your policy limits.

That could mean:

Draining savings
Losing investments
Risking future income

Umbrella insurance helps provide peace of mind by protecting what you’ve worked hard to build.

Is Umbrella Insurance Worth It?

In many cases, yes. Umbrella policies are typically very affordable compared to the amount of coverage they provide—often offering $1 million or more in additional protection.

Final Thoughts

Umbrella insurance is one of the simplest ways to add an extra layer of financial protection. If you have assets to protect or potential liability risks, it’s worth having a conversation with your agent.

About the Author

Pat Foley has been part of the team at Foley Insurance Group since 2012 and brings more than 25 years of experience in property, casualty, and life insurance.

Pat remains committed to ongoing education and building client relationships based on trust and personal service—founding principles of the Foley Insurance Group agency.