Insurance umbrella or just liability???

[Bryan N.]

I was considering getting a $1M umbrella policy for $22 a month. I went online to get a quote on Rental Property Insurance (USAA calls it that) for a SFH I am evaluating. The quote showed for an additional 45 cents per month, I can get $1M in liability coverage. Should I even bother with the umbrella policy? ***This will be my first investment property***

Thanks for any advice

Here is how they define the coverage:

Personal Liability - Each OccurrencePersonal Liability provides protection if someone makes a claim or files a suit against you (or someone covered by the policy) for accidental personal injury or property damage and the cost to defend any such claims or suits against you. Your limit of coverage should be high enough to protect the total value of your personal assets, including your home. Example: if someone slips and falls on your property and sues you, this coverage would protect you.

[Kevin Romines]

Great question.

Liability insurance on your home just covers liability primarily arising from the home, but it also covers other areas as well. An umbrella policy will cover multiple things, such as secondary coverage on your personal liabliity, secondary coverage on your auto's, as well as multiple homes, both primary and rental, business pursuits, recreational vehicles, farms and equipment, vacant land. So the umbrella policy is a much more broad type of coverage.

If the additional million is only .45 a month, I would add that as well as getting the umbrella policy, and adding all the areas of coverage that make sense. I would also update or add addition homes, cars, business pursuits to the policy as you need them in the future.

The 1st rule in business is to learn how to make money, the 2nd rule is to learn how to keep it. Thats where insurance can help.