Why might a property owner choose an umbrella policy?

A property owner might choose an umbrella policy primarily to provide additional liability protection that goes beyond the limits of standard insurance policies. This type of policy is designed to cover legal fees, medical expenses, and claims that exceed the coverage provided by primary policies such as homeowners, renters, or auto insurance. By having an umbrella policy, a property owner enhances their overall protection against significant financial losses resulting from lawsuits or large claims, giving them peace of mind in situations where they might be held liable.

This additional layer of coverage is particularly valuable in today’s litigious environment, where legal claims can far exceed typical policy limits. While it's not mandatory for all property owners, having that extra safeguard can be a strategic decision for asset protection.