Umbrella insurance is a form of supplemental liability coverage that provides an extra layer of protection once the limits of your primary homeowners, auto, or boat policies have been exhausted. It’s an affordable way to safeguard your assets against a major lawsuit, offering high-limit coverage for bodily injury and property damage claims that could otherwise be financially catastrophic.
- What It Is: An extra layer of liability insurance that provides coverage above the limits of your existing homeowners, auto, or boat policies.
- What It Covers:
- Excess Liability: Kicks in when the liability limits on your other policies are exhausted.
- Broader Coverage: Can cover claims not included in your base policies, such as libel, slander, and false arrest.
- Who It’s For: Individuals with significant assets to protect or those who are at a higher risk of being sued.
- Key Considerations: You must have a certain minimum amount of primary homeowners and auto liability coverage to qualify.