For college students and even some recent graduates, the liability coverage in their renters policies may be sufficient, or they may be covered under their parents' insurance, according to Suneson. Once young people who are renting start to earn a real salary, buy a car or accrue assets, the umbrella coverage is money well spent.
"For a student, if they're just going away for college and concerned about personal liability, they should make sure to buy a renters policy that includes liability coverage -- many don't include it," he says. "Many students don't have a car, so an umbrella policy may not make sense."
Finally, don't let the $1 million threshold lull you into thinking umbrella coverage doesn't apply just because you're a renter.
"People are getting educated that $1 million in coverage doesn't mean it's an expensive policy," Noles says. "You don't have to be a millionaire to be sued like one."