A personal umbrella policy is an extension of your liability insurance. It helps broaden and increase your protection. This can include significantly upping your coverage limit to relieve the financial strain of medical bills and legal fees in the event of an extremely costly accident.
Umbrella insurance protects you in liability situations where your home, auto, boat etc. policies come up short. The extra coverage protects you in two ways:
- Increases the dollar limit of liability coverage for primary policies
- Covers claims excluded by primary policies
Umbrella insurance is surprisingly inexpensive, especially considering everything it can do. Three examples of umbrella liability claims are: car accidents, dog bites and trampoline accidents. In each scenario, an umbrella policy would kick in once the liability coverage limit on your auto, homeowner or renters liability is reached.