Why would an individual consider purchasing an umbrella insurance policy?

An individual would consider purchasing an umbrella insurance policy primarily to provide additional liability coverage beyond the limits of their standard home or auto insurance policies. This type of coverage is designed to protect against large claims or lawsuits that could exceed the limits of primary insurance policies. For example, if someone is involved in a serious accident or faces a lawsuit for personal injury, they might encounter costs that surpass the coverage available through their standard policies. An umbrella policy offers added peace of mind by covering these excess amounts, which can protect an individual's financial assets and future earnings. Additionally, umbrella insurance can provide coverage for specific scenarios not included in standard policies, further enhancing one’s overall liability protection.