Umbrella insurance can be used to protect your assets in situations where there is accident that exceeds the limits on your underlying policies, such as your automobile policy, home owners policy, or personal boat policy. The reason it is an asset protection tool is because anything you are not insured for, depletes your assets.

Umbrella policies are a single policy that provides excess liability for all of your underlying liability policies and they start at $1,000,000 limits and typically go up to $5,000,000. This could provide up to a total of $6,000,000 in coverage when combined with the underlying limits and if it is still not enough, there are specialized companies that can issue policies for higher limits.