One insurance premium I never mind paying

I pay a small fortune every year on insurance across every category imaginable. Most of it stings.

But there’s one premium I never mind paying: 

Umbrella insurance.

It’s one of the most overlooked, economical, high-impact coverages you can buy. Yet it’s often the one people skip.

Umbrella insurance is excess liability coverage that sits on top of your core policies (homeowners, auto, boat, renters, etc.). It protects your personal assets from life-altering claims.

One bad accident.

One pool party gone wrong.

One lawsuit from a dog bite.

That’s what this is for.

You can typically get $1M of coverage for just a few hundred dollars a year.

What it can cover:

 • Bodily injury to others

 • Property damage to others

 • Legal defense costs

 • Certain lawsuits (libel, slander, false arrest)

What it doesn’t cover:

 • Your personal property

 • Damage to your own vehicle or home

 • Punitive damages

Example:

You cause a severe multi-car accident with $2,000,000 in damages.

Your auto policy only covers $500,000.

Your umbrella policy could step in to cover the remaining $1,500,000.

Without it, your personal assets are exposed.

Everyone’s situation is different, but a helpful starting rule of thumb is to carry 1–2x your net worth.

All insurance is about peace of mind.

Umbrella insurance is the one policy where the peace of mind doesn’t hurt your wallet.