Should a rental property carry a 1M umbrella policy?

Question

I have 300,000 per accident through my car and home. Do I need more?

Answer 1

Well, that's the wrong question.  If you don't have the UNDERLYING liability coverage on your homeowners policy, that umbrella isn't going to do you any good.  So, where does the rental property have the first $300,000 of liability coverage?  

You need to carry enough liability - between the auto, and the homeowners, and the rental property, and the umbrella - to cover what you're worth, PLUS three years of income.  

So, what are you worth?  That's what you need to cover yourself for, in a lawsuit.

Answer 2

I personally carry 2million liability for my home and auto.  Lawsuits are getting bigger and bigger.

Imagine if someone visiting falls down the stairs, breaks their neck, and it's your fault somehow (ie bad railing).  Just one example.

So yes, I would recommend you get 1million instead of $300,000