You should consider buying umbrella insurance if you have assets greater than what your other policies’ liability limits are. For example, if your auto policy is $100,000 per person and $300,000 per accident, and if you have assets including a mortgage that’s worth more than $300,000, then you should probably consider buying an umbrella policy. A $1 million umbrella will extend your auto liability limits to $1.3 million per accident.
Note: A personal umbrella policy will not cover your business. If you own a business, you’ll need a commercial umbrella policy. Similarly, a personal umbrella will not cover a farm. You’ll want to buy a farm umbrella policy for that.