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what is umbrella insurance

Umbrella insurance is a type of personal liability insurance that provides additional coverage beyond the limits of other liability insurance policies, such as homeowners insurance or auto insurance. It can provide protection against a wide range of potential liabilities, including personal injury, property damage, and defamation.

Umbrella insurance is designed to help protect policyholders against catastrophic losses or lawsuits that may exceed the limits of their other liability insurance policies. For example, if someone is sued for causing a car accident that results in significant injuries to the other driver, their auto insurance policy may not provide enough coverage to pay for the damages. An umbrella insurance policy could provide additional coverage to help pay for the damages.

Umbrella insurance is typically purchased in addition to other liability insurance policies and provides coverage above and beyond the limits of those policies. It is important to carefully review the terms of an umbrella insurance policy to understand the types of liabilities that are covered and the limits of the coverage.