Personal umbrella policy? HELP!!

[John T.]

    How are you everyone. I am just getting so confused about the umbrella policy thing, that I am asking for help to clarify a couple of things. Any advice, opinion or help will be appreciated it a lot, seriously.

     I have a 300k liability coverage for my rental property, and following the advice of people in the industry, I asked the agent about a bigger liability coverage. He gave me a quote of $100 a year plus taxes for 500k, and at $200 a year plus taxes for 1 million. All right, fair enough, I think, but now is when I get confused. I read in many posts that some investors have the umbrella liability coverage (500k, 1m, 2m, whatever) and also a personal umbrella policy for another 1m or 2m or so. What is this mean? It is like having two different insurances? You do this with the company or agent? The extra umbrella coverage is the same that this personal umbrella coverage that some people talk about?

As you can see, I am really lost about this....

[Mike McCarthy]

An umbrella policy is an inexpensive way to increase your liability coverage at a lower price. The umbrella policy is ‘over’ all your other policies (home, auto, rentals, motorcycle, etc) and handles everything between the $200/300K that the main policy covers, up to $1/2/3M. The best part, is it’s only a few hundred $$ per year.

It’s similar to increasing the individual policy coverage, but since it’s handled in a way that it’s pretty much a safety blanket, they offer it cheaper.