Umbrella insurance is extra liability insurance. This type of insurance policy is designed to help protect you from major claims and lawsuits and as a result it helps protect your assets and your future. It does this in two ways:
Provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies. This protection is designed to kick in when the liability on these other policies has been exhausted.
Provides coverage for claims that may be excluded by other liability policies including: false arrest, libel, slander, and liability coverage on rental units you own.
What does umbrella insurance cover?
Still a bit hazy on what an umbrella policy covers? Well, let's dig into the details a bit. Umbrella insurance provides coverage for:
Damage to property
Personal liability situations listed below
You're thinking, "I have auto and homeowners insurance that covers some of these situations." True!
But, umbrella insurance insures you above and beyond the limits of those policies and covers some situations that aren't covered by the other types of policies. And rates are less than you think!