Only you can decide what level of coverage provides you the peace of mind you are seeking. We are seeing more lawsuits than ever before and the court system is awarding higher settlements so the extra layer of coverage that an Excess or Umbrella policy provides can be helpful. Example: You are working on a pipe you do not realize is a gas pipe. You leave it on while checking on something else and come back to find the basement engulfed in flames. You and the homeowner escape in the knick of time but the home burns to the ground. The Homeowners Insurance company pays to rebuild the home, replace all the contents inside and pays all the additional living expenses for a year totaling  $1,550,000. Your limit on your Contractor’s General Liability policy is $1,000,000. You would be on the hook for the remainder.