Umbrella insurance is additional liability insurance that will protect you financially if you are sued for a large amount of money. Auto and home policies have limits in terms of the dollar amount they will cover; these limits are agreed upon at the time you set and sign the policy and can often help to determine the price. The higher the limit, the higher the cost of the policy.
But limits are limits, and by definition carriers will not exceed them in their payouts. If you want fiscal protection against a large lawsuit, umbrella insurance is the way to go.
Umbrella insurance provides broad insurance beyond traditional home and auto. It provides additional liability coverage above the limits of homeowner’s, auto, and boat insurance policies. It can also provide coverage for claims that may be excluded by the primary policies. These may include, but are not limited to: