When Do You Need Personal Umbrella Insurance? If you are sued for damages by a guest in your home who suffered an injury, a legal judgment against you could exceed the insured amount on your home policy for this type of event. It’s the same story for standard car insurance if another driver, other passengers, or even your own passengers were injured in a wreck in which you were the driver. The same goes for watercraft insurance. Umbrella insurance can assist in the claim and payment processes by covering costs when all other insurance is exhausted. This makes the handling of claims and payments a much easier process. Island Insurance Specialists can help find the right umbrella policy to fit your needs.