"Full Coverage" Insurance - do I need it or is it really just an option?

[phroenips]

Note: an umbrella policy is a liability policy which tends to cover pretty much everything you own (car, house, etc). It will only pay out if you are found negligent in some area. For instance, at the house, if someone sues you because they slipped and fell on some ice, first, your homeowner's liability kicks in, then if it goes above that, the umbrella kicks in to cover the rest.

Likewise, in a car accident, if you were found at fault, and there was some major damage to either property or life, the vehicle liability would pay up first, then anything above that, the umbrella covers.

 

[Aasland]

Please excuse my ignorance, but is this umbrella policy something under your home owner's insurance, or something else?

It is something else that kicks in after the other policies have been exhausted. Note that it may require that you carry higher limits on the other policies as well.

 

[PhilJet09]

I guess what I meant to ask was: do I get an umbrella policy from my home owner's insurance company, car insurance company, or somewhere else? I have it figured out after a little research. Thanks guys.