What is umbrella insurance?

Umbrella insurance is designed specifically to provide additional liability coverage beyond the limits of other existing insurance policies, such as home or auto insurance. This means that if a claim exceeds the limits of your standard liability coverage, the umbrella policy kicks in to cover the additional amount, offering extra financial protection in case of large claims or lawsuits.

This type of insurance is valuable because it helps to protect your personal assets from being depleted due to unexpected liabilities. It typically covers a wide range of claims, from bodily injury and property damage to personal liability situations that may not be covered under your other policies. Therefore, having an umbrella insurance policy can provide peace of mind and enhance overall coverage.

The other options describe types of insurance that do not encapsulate the broad protective intent of umbrella insurance and its role in additional liability coverage.