Should renters get an umbrella policy?

Opening the umbrella
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Opening the umbrella

Renters must have property insurance with liability protection to cover their leased apartment or home before adding umbrella liability coverage.

Getting a renter's policy is a first hurdle for many to overcome, since only 1 in 5 people who rent has one, according to Bill Suneson, co-founder and president of Next Generation Insurance Group.

Basic rental insurance policies typically include $100,000 in liability protections, while the starting point for an umbrella policy is $1 million of coverage. The latter kicks in when you have maxed out the liability on policies for your rental and your auto, if you own a car.

"An umbrella policy is excess liability protection -- it sits above a renters or auto policy," Suneson says.




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