An umbrella policy is a liability insurance policy that provides an extra layer of liability coverage over and above your underlying insurance policies. It can include your auto, home, boat, or rental property. If you're involved in a claim on any of your insurance policies where the liability limits are exhausted, your umbrella policy will afford you more liability coverage.
Typically, personal umbrella policies start at $1,000,000 in coverage, and can be purchased for as much as $5,000,000, or in some cases, $10,000,000. It is recommended that you have enough liability coverage to match your assets and net worth.
There are also commercial umbrella policies that provide excess coverage over the top of business, business auto, and workers compensation insurance policies.