Umbrella insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies. Specifically it is extra liability insurance coverage that goes beyond the limits of the insured's home, auto or watercraft insurance. It provides an additional layer of security to those who are at risk for being sued for damages to other people's property or injuries caused to others in an accident. You may need this if you are sued and the dollar limit of the original policy has been exhausted. The added coverage provided by the umbrella insurance is most useful when there are younger drivers in the household, households with watercraft, recreational vehicles, rental property. The chance of being sued personally is on the rise in this country so the personal umbrella can protect any person’s assets no matter what their position is in their community.