An umbrella policy can be a good idea if you have a lot of assets or high net worth. It’s also a good idea if you have a high income and if you’re self-employed because your general liability insurance isn’t designed to protect your assets.
In general, most people will qualify for personal umbrella insurance coverage. The only individuals who may not qualify for a personal umbrella policy include those who have a voluntary workers compensation policy or who have filed a claim against their personal auto policy in the past three (3) years.
The standard personal umbrella policy is for individuals with assets worth more than $1 million. The umbrella covers the gap between what an individual has in liability insurance and the individual’s assets. For example, if you have a $1 million personal umbrella policy and you are sued for $100,000, your umbrella covers the difference.