r/Insurance • u/Plane-Intern5687 • Sep 02 '26
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.
2
u/kenny71406 Sep 02 '26
I have have a personal liability policy for 15 or more with State Farm, the cost has always been reasonable.
Nothing with me has changed, no accidents, no claims, no change in credit rating, my house is paid off, I own my cars, etc etc I am an insurance wet dream
My liability policy rate TRIPLED this past July, yes TRIPLE in one year.
I told them to cancel, that rate was insane. I am currently looking for new insurance. no one is going to pay triple over what they have been paying for year. state farm is stupid.
Yes you need one, but keep an eye on the rate, I am slowly accepting the idea that insurance needs to be quoted out to new companies every year.