Is umbrella coverage worth it?

Dear Dave,

Are umbrella insurance policies worth it, or do they just entice people to sue more frequently?

Tammi

Dear Tammi,

I don’t think there’s any indication umbrella policies entice folks to bring lawsuits more frequently. If you hadn’t noticed, we live in a lawsuit-happy world. There are lots of greedy people out there who would try to sue for absolutely anything—no matter how ridiculous.

If you’ve got a substantial net worth, or if there’s just something that gives the impression someone might be able to get a lot out of you, an umbrella insurance policy is a smart buy.

— Dave