We’re thinking about adding an umbrella liability policy to our homeowners/auto insurance policy. I talked with our agent about it, and it would cost $216/year to add a $1 million umbrella to our coverage. We’ve talked about it for ages, but keep forgetting to do anything about it. I emailed our agent with a few questions, but I think we’re going to go ahead and do it when he gets back to us. We’re currently paying a total of $1297 a year for our homeowners policy and our car insurance for both vehicles. I feel like $216/year is a good deal for the amount of coverage we would be getting, although I know that the chances of ever needing that sort of coverage are slim (our homeowners policy already has $300,000 in liability coverage). But then again, lawsuits are not pretty things, and I’d much rather have an insurance company taking care of the mess if there should ever be one.
Any thoughts? Do you pay extra for a liability umbrella on your insurance policy? For those who do, does $216/year sound like a good price for a $1 million policy?