Umbrella Liability Insurance
Cheap excess liability coverage that sits on top of your auto and home policies — usually $1M for ~$200/yr.
What it covers
When a lawsuit (auto accident, dog bite, pool injury, defamation, even some volunteer activities) blows through your underlying auto/home liability limits, the umbrella picks up the rest. Defense costs are typically covered above the limits.
How much
Rule of thumb: at least your net worth, often more for high earners and visible professionals. The first $1M is dirt cheap; the next $4M is also cheap. Above $5M you start needing specialty markets.
Underlying limit requirements
Carriers require you to carry minimum auto (often 250/500/100) and home liability before the umbrella attaches. If you don't, there's a gap and you self-insure the difference.
Educational only — not tax, legal, or investment advice. Talk through your specific situation with a qualified advisor.