An umbrella policy provides additional liability coverage beyond the limits of your other insurance policies. It is most useful when the liability from an incident exceeds the limits of your auto, home, or other insurance policies. For example, if you are sued after a car accident, and the settlement amount exceeds your auto insurance liability coverage, your umbrella policy will help cover the remaining amount.

An umbrella policy also covers situations that are not typically included in standard liability policies, such as libel or slander. It acts as an extra layer of security for policyholders who face potential risks that go beyond ordinary scenarios. Because of its broad coverage and high limits, umbrella insurance is a smart choice for individuals who have substantial savings, property, or high-income earning potential.