No. of Recommendations: 0
1. Agree with PSUEngineer. You need protection in case of an auto accident [for instance] someone sues you for more than the limits of auto insurance -- it happens.

In addition, if the umbrella insurance is properly coordinated, you can save money on the underlying, usually more expensive auto insurance or even homeowner's insurance.

2. I agree you need to be careful of private disability insurance if you have it at home. What some of these private policies do is pay you during a disability even if you are paid for a work policy too. For instance, many company policies pay you 50% of your salary after you use your sick leave, and after a defined time for your illness. The other policies can pay you earlier and make up any salary gap.

But, I've also found that second level insurance costly AND I'd look at the cost and what you need to do to self-insure that loss.

Also, remember that these often don't cover work-related disabilities that are usually handled under workman's comp.

Having said that, I haven't found a good way to self-insure the potential catastrophic loss covered by an umbrella policy should you be sued for your entire assets.

3. OT? By the way, also look at your auto policy to determine whether they will cover legal costs in any suit. State Farm, IMO, does a good job. Some do not and will pay, even if you're innocent, and drop you, rather than defend a suit.

I had that happen with my wife in an auto accident (a guy became a very big pest in an accident that was no one's fault) and was pleased that State Farm didn't cave.

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