Umbrella insurance is extra liability insurance. It is designed to help protect you from major claims and lawsuits and as a result it helps protect your assets and your future. This protection is designed to kick in when the liability on these other policies has been exhausted.
It does this in two ways:
Provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies.
Provides coverage for claims that may be excluded by other liability policies including: false arrest, libel, slander, and liability coverage on rental units you own.
When choosing coverage levels for Umbrella Insurance, consider these three things:
The risks you may face
The value of your assets
The potential loss of future income