Umbrella – Everyone should consider purchasing an umbrella excess-liability policy. In the past only people with wealth were considered to have the need for this policy, but as lawsuit amounts have risen, there’s risk involved for just about everyone. Your auto, home, boat, and renter’s policy may not be enough coverage to fully protect you in case of a serious accident. And this type of policy provides an additional layer of liability coverage above your existing policies. As part of the underlying umbrella/excess-liability policies, the insurance company will pay your defense costs if your lawsuit is for a covered loss. The cost to you, therefore, is relatively inexpensive compared to the amount that you could spend for your own legal defense.