Everyones situation is different. But as a general rule of thumb, you should attempt to get enough coverage equal to some version of your net worth. In other words if you are worth about $2 million dollars, than consider purchasing a $2MM umbrella. This combined with what you can afford should help get most people the right amount. Generally speaking liability and Umbrella insurance is not too expensive.
The other way to look at it is to review aspects of your life that may increase your risk of personal litigation: What are your hobbies, do you have a dog, kids, do you or your spouse drink, do you host parties, do you have pool, trampoline, or any other activity at your house that people can get injured doing? Do you sit on any non profit boards? Do you speak your mind often, get in heated debates? There are other risks to consider as well.
Also, If you are extremely affluent, you may want to speak with an attorney that can help fine tune this for you.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines
. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.