Umbrella insurance policies provide an extra layer of liability protection beyond your standard auto, homeowners, or renters insurance. Here’s how they work:

Additional Coverage:Umbrella insurance kicks in after your existing policies (like auto or homeowners) reach their coverage limits. For example, if you’re involved in a car accident and the damage exceeds your auto policy’s liability limits, umbrella insurance will cover the remaining costs up to the umbrella policy’s limit.

Broad Protection:Umbrella policies cover more than just car accidents or property damage. They typically offer protection for things like:

Personal injury (e.g., if someone gets injured on your property and you’re held liable)
Defamation (e.g., libel or slander claims)
Rental property incidents (e.g., if you rent out a property and someone gets hurt)
Legal defense fees in case you get sued (even if you aren’t at fault).

High Coverage Limits:Umbrella policies often start at $1 million in coverage, and you can increase this based on your needs. They are designed to provide significant protection for catastrophic incidents.

Affordable:Umbrella insurance is often affordable, especially compared to the amount of coverage it provides. It’s a good way to secure high-limit liability protection without paying a huge premium.