Do I need umbrella insurance if I'm a young professional who's just starting to build wealth?

Umbrella insurance is worth considering once you have assets or future income worth protecting, and future income counts. A single serious at-fault car accident or a lawsuit can produce a judgment that exceeds your auto or home liability limits, and the excess comes from your savings and even garnished wages for years. An umbrella policy sits on top of those limits and adds a large layer, typically starting at $1 million.

It's one of the cheapest coverages per dollar of protection, often a few hundred dollars a year for $1 million. Insurers usually require you to carry certain underlying auto and home liability limits first. If you own a home, rent to others, have a teen driver, or have a public profile, the case gets stronger.