Which of the following statements is true about umbrella insurance?

Umbrella insurance is designed to provide an additional layer of liability coverage that goes beyond what standard policies offer, such as homeowners, auto, and boat insurance. This added coverage helps protect policyholders from large claims or lawsuits that could exhaust their underlying insurance limits. If a claim exceeds the coverage limits of these standard policies, umbrella insurance kicks in to provide extra protection, which is particularly valuable in scenarios involving significant injury claims, property damage, or legal fees.

The other options describe aspects that do not accurately reflect the purpose of umbrella insurance. For instance, umbrella insurance is not primarily focused on health coverage; it does not limit itself to vehicle-related claims; and it is indeed capable of addressing property damage claims, making the correct choice all the more relevant in understanding how this type of insurance functions within a broader risk management strategy.