Umbrella insurance policies are ideal for individuals or families with significant assets or liability exposure. The additional coverage an umbrella policy can provide can help individuals protect their hard-earned wealth — and have peace of mind.

Umbrella insurance extends beyond the norm of home, auto, and watercraft insurance limits. It offers a high level of liability protection that acts as an additional layer of coverage above your other policies. It provides increased protection up to the policy limits and can cover a variety of costs, including legal fees.

For example, if you are sued for a car accident and your liability limit is $100,000, but the judge awards a total of $1.2 million in uncovered damages, your umbrella insurance can protect you from the remaining $1.1 million. Without umbrella insurance, you would be on the hook for the full amount.

Umbrella insurance isn't for everyone; it's primarily for those with significant assets or a higher than average lawsuit risk. People who own a home, a business, a boat or other watercraft, or engage in activities that could increase their exposure to a lawsuit may benefit from a policy.

Overall, an umbrella policy can provide protection not only to your financial assets, but also to your peace of mind. Hopefully, you'll never need the additional coverage, but if you do, you'll be rested assured that your assets will be protected. There are a variety of factors to consider when researching and purchasing an umbrella policy. You should shop around to compare policies and prices, and make sure you’ve purchased enough coverage to protect your assets. Be sure to document the coverage and costs of your policy, and review the limits periodically, as your assets and risk exposure may change over time.