Typically, personal umbrella insurance covers various scenarios, including bodily injury, property damage, and certain legal defense costs. For instance, if a policyholder is found liable for a severe car accident or an incident on their property resulting in substantial injury, the umbrella policy can cover the excess costs that surpass the limits of their primary insurance.

This coverage is particularly valuable for individuals with significant assets, as it protects against the risk of losing personal wealth due to large liability claims. Personal umbrella insurance thus ensures comprehensive protection, safeguarding one’s financial future and providing peace of mind against unforeseen, high-cost liabilities.