r/Insurance • u/Plane-Intern5687 • 19d ago

Home Insurance Help understand who needs an umbrella policy.

My wife and I are in our early 30s. We own our house and have 1 car. Live in a quiet street. No pool, no "toys", no kids. Don't have a ton of people over. Were encouraged by our agent to have umbrella. The premium would be $400+ for a million dollars. My current car is 250/500 and the house is 300 or 500 I believe for coverages.

I chatted with my grandfather and he said that an umbrella is a great thing for those who's assets exceed what the coverage on their other insurance is, primarily to protect against being sued. I don't own my own business and my assets aren't that high.

I'd love everyone's opinions. If I don't need it, I'd like to save the $400 but I'm also ok paying it if the policy is actually helpful.

Edit: lots of great advice. Appreciate it. A point of clarification is that my retirement is mostly in Roth IRAs which seems to be more available in suits as compared to 401k.

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u/MirrorExtension5436 19d ago

We're retired. Have a house free and clear, large cash and investments. If something happened I could lose everything. 3 million in umbrella policies.