Would you get an umbrella policy for your first property? I’ll be living in it for at least a year.
@Patrick Dean Depending on your circumstances, an umbrella insurance policy can be a good idea even if you own no rental real estate. An umbrella policy picks up where your regular home or auto insurance policy ends. It's a liability safety net that protects your assets in the event you are sued. So yes, I'd recommend that you get an umbrella policy as soon as your assets are larger than the limits on your other policies.
Please let me know if I've misread your question or if you were hoping for a different perspective. Lore
@Lore Postman no that’s a perfect response; thank you so much!!
Does the umbrella policy cover all incidents?
@Sean S. umbrella's vary slightly by carrier, but the exclusions are somewhat universal across the industry. It does not cover every incident, but it does provide substantial coverage
If I am doing basic work with a friend (painting, putting together cabinets, laying some laminate flooring) would it cover my friend if he were to get hurt on the job?
Typically, no -- your friend's health insurance would pick up the cost for the injuries. If you were negligent in causing the injuries, and if you were not remunerating your friend in any way, your policy might, depending on the circumstances. An umbrella policy will not cover lost time, etc., like a Workers Compensation policy would.
Should have also clarified, an umbrella policy picks up when the limits of the underlying home or auto policy have been maxed out. It adds additional $$ to the limits, but does not pick up additional perils or causes of loss.