So when do you need umbrella insurance? You will need this extra liability cover when one or more of your other insurance policies do not have an adequate level of liability cover. Your primary policies will often only cover you for bodily injury and property damage. A good umbrella policy will include bodily injury, personal injury and property damage which could be caused by you, your dependants or even your pets. In addition, an umbrella policy can also cover you for false arrest, invasion of privacy, malicious prosecution, defamation and eviction, among others.
Be sure to discuss the fine print of any umbrella policy with a broker and/or insurer as there are often limitations and loop holes in these policies which may leave you exposed when claiming. Shop around for umbrella insurance policies as comparing insurance quotes and policies could save you money both in premiums and in possible losses. Being sure of what your cover entails will stand you in good stead in the long run.