However, most people should consider buying a policy. An umbrella insurance is necessary if you fit one or more of these categories:
- People who own (or rent) boats, cars or other vehicles
- Coaches of youth sports
- People with dogs or dangerous pets
- Parents
- People who host guests in their home or on their property
- Anyone who own rental properties
- People who talk about other people or businesses
- People who volunteer their time and services
Many of these activities increase your chance of being involved in a lawsuit, even if they might seem harmless.
How Much Umbrella Insurance Do You Need?
An $1 million policy is sufficient for most people and should only cost a few hundreds a year. It’s one of the most affordable insurance policies you can buy, but it's still a good idea to shop around.