Umbrella insurance for everything above your limits.

Personal umbrella insurance is the cover people are most often glad they bought and least often think to ask about. It does one thing: it extends the liability limits on the policies you already hold, usually in increments of a million dollars, for a premium that is small relative to what it protects.

Why underlying limits run out

Liability limits on a personal auto policy are finite and, in a serious injury claim, not especially large. Medical costs, lost earnings and a settlement can move past a $300,000 or $500,000 limit without anything unusual happening. Anything beyond the limit is a personal debt, and future earnings are not out of reach of a judgment.

An umbrella responds after the underlying policy is exhausted. Because it only ever pays in the tail of a claim, the premium is a fraction of what the equivalent limit would cost on the primary policy.

Who should be thinking about it

The usual triggers are assets worth protecting, teenage drivers in the household, a swimming pool or trampoline, a rental property, a dog, or any regular role that puts you in front of the public — including volunteering on a nonprofit or association board.

Carriers require you to hold specified minimum limits on the underlying auto and home policies before an umbrella will sit above them. That often means adjusting the primary policies first, which is straightforward when the same agency handles both.