Everyone needs an umbrella! An umbrella insurance policy is sometimes referred to as an “excess” insurance policy that is protection above and beyond your current liability protection under policies such as homeowners, boat, home, and motorcycle. An umbrella policy only kicks in once the primary limits of liability of that policy have been exhausted.
If you are found responsible for causing an auto accident that involves many people who are seriously injured, your limits of liability may be exhausted quite quickly, which leaves all of your assets up for grabs to pay the balance. Typically umbrella policies start at 1 million dollars and can go up to 10 million.