Umbrella insurance is a form of liability insurance that will supplement your basic liability policies, such as your auto, home, or renter’s insurance. An umbrella liability policy covers a much higher limit and goes above and beyond claims directly relating to your home and auto.
The main purpose of your umbrella policy is to protect your assets from an unforeseen event, such as a tragic accident in which you are held responsible for damages or bodily injuries. If another party files a lawsuit against you, your umbrella coverage will pay for the damages you are legally responsible for up to the policy limit. Umbrella policies also provide a broader form of coverage and can help cover legal fees, false arrest, libel, and slander.