Sadly, we live in a lawsuit-crazed society - people are often inclined to sue for damages.  Umbrella liability insurance, or excess personal liability coverage, is intended to protect you in case you are held personally liable to another person for injury or property damage.

Even the most cautious people are at risk.  Consider these situations that could lead to lawsuits:

Umbrella insurance provides from $1 million to $5 million of additional liability protection at a cost of $200-$600 per year.  It complements your auto and homeowner's coverage so the insurance company may require you to adjust your liability coverage in those policies.  In fact, many companies tailor their excess liability provisions around auto and homeowner policies so it is often a good idea to buy umbrella coverage from the same company to minimize any coverage "gaps."

Besides providing additional liability protection some umbrella policies will pay attorney's fees, premiums on bonds and limited loss of income while attending trials or hearings.  Coverage may include payment for your share of loss assessments arising from claims against you as a resident of a housing association.