Umbrella insurance is important because it provides additional liability coverage above and beyond the limits of your standard home, auto, or boat insurance policy. This coverage can help protect your assets in the event that you are found liable for damages or injuries in a lawsuit. Without umbrella insurance, you may be personally responsible for paying any damages that exceed the limits of your standard policy, which can be financially devastating. Additionally, umbrella insurance may also cover certain types of liability that are not included in standard policies, such as false arrest, libel, or slander. Overall, umbrella insurance is a cost-effective way to help protect your financial well-being in the event of a liability claim.