Umbrella Insurance Worth It?

[mastrr]

I have one rental I purchased last year that was assessed at $120,000.  My homeowners insurance policy covers personal liability $300,000, dwelling $30,000, personal property $10,000, loss of use $22,000.

I signed up for an 1 million dollar umbrella insurance policy because I was planning on purchasing another rental.  However, for now plans have changed and I don't plan on purchasing another one in the near future.  My umbrella insurance forced me to get renters insurance and am currently paying $29/month for umbrella & renters insurance. 

If it matters my NW is around $150k, so well under the $300,000 personal liability coverage.  Am I over insuring myself?

[Bearded Man]

You don't carry insurance equivalent to your assets, you carry it to protect assets you have and beyond. Just because you only have 150K NW doesn't mean you can't get hit with a multi million dollar law suit, effectively mucking you over for life.

I have an umbrella policy, and I'm actually considering upping it to a few mil. It is only about $15 a month now for 1 mil, and I believe you can expense it on schedule E. I carry it only because I'm a landlord, so it's a rental expense to me.