An umbrella policy provides excess liability coverage that goes beyond the liability coverage provided by your auto, home and other personal insurance policies. It provides an extra layer of protection, helping to protect your assets that could be lost if a lawsuit is brought against you.
Umbrella liability insurance protects you in situations such as:
- Someone suing you as a result of an auto accident under your auto insurance policy.
- Someone slipping and falling on your property, and suing you under your homeowners insurance.
- Your neighbor suing you as a result of a natural disaster in which, for example, a tree on your property falls and damages his home or vehicle.
You must have underlying auto or homeowner’s insurance first in order to qualify for an Umbrella policy.