As your life changes, your insurance needs change, too. In fact, there may even be types of insurance you didn't know you needed!

An "umbrella"  is one of these oft overlooked policies. Umbrella insurance is extra liability insurance that's designed to help protect you from major claims and lawsuits -- and as a result, it helps protect your assets and, ultimately, your future. While the general opinion is that only the wealthy need umbrella insurance, that's a misconception.

Here are three signs you may need a personal umbrella policy:

You drive

It doesn't matter if you have a squeaky-clean driving record: the fact is, 1 in 7 drivers is uninsured (and many more than that carry only the bare minimum coverage). As such, the likelihood of suffering a big loss after an accident with an uninsured or underinsured driver, is significant. But here's where an umbrella policy comes into play: it pays for injuries from an accident caused by the owner or operator of an uninsured or underinsured vehicle, and provides extra coverage after the primary auto policy’s limits are exhausted.

You have a steady income

You don't have to be a millionaire to be the subject of a lawsuit: people with significant assets (ex, a nice house) and a steady income can be targeted. In fact, a single judgment could exceed the average person’s savings, home value and other assets - and put future earnings at risk. In today's environment, something as innocuous as insulting someone over Facebook could land you in a legal disaster for defamation of character, slander or libel.

You want to save a buck or two

It may seem counter-intuitive, but think about it: all those extra assets you have may not be covered by your standard homeowner's policy. Maybe you have a weekend house, a boat, a vintage doll collection... these are all things that may not be covered (or covered enough). Especially when the average person raises deductibles or cuts "extras" to save money, you may be looking at costly loses, should something happen.

A personal umbrella is likely more affordable that you think - and could provide the peace of mind that comes with being properly insured.

Source: Independent Agent, 3 Signs Your Clients May Need a Personal Umbrella

Photo credit: Flickr/Ian D. Keating