Umbrella insurance is a policy that kicks in to help you out when you exceed the limits of your existing policies. If you have assets, it's a good idea to carry at least one million dollars in personal umbrella insurance. It really is as simple as that. 
Here's what you need to consider:
- You may own less than $1 million in assets. In fact, most of us do. However, the cost of a lawsuit can far outweigh the value of your assets. Lawsuits may not only drain your current assets, but also leave you paying off the expenses for years to come. With an umbrella plan in place, you have some protection against that.
- $1 million in umbrella insurance generally costs less than you might think it does. A million dollars, even to those of us who earn a comfortable living, sounds like something we'd be lucky to earn over 20 years, so buying that much protection may feel excessive. However, a policy at this scale may only cost you a couple hundred dollars a year, which is probably less than you pay for your streaming entertainment services.
- If you make six figures a year or have more than a million dollars in assets, you will want to buy more than $1 million in umbrella insurance. For the rest of us, $1 million should be more than enough to cover all but the most unlikely of circumstances.
Umbrella insurance is sort of like insurance for your insurance.
If you have home, car, and health insurance, the additional safety net offered by an umbrella policy can help to ensure some level of economic security.
More than that, it provides peace of mind. It helps knowing that you're going to be taken care of, and that a lawsuit or a liability claim isn't going to leave you wondering how you're ever going to pay for it.
Also Read: The Importance of Umbrella Insurance