What is umbrella insurance?

Umbrella insurance provides additional liability coverage, in $1 million increments up to $10 million, over liability coverage in other policies you already have and for unusual risks that aren’t covered by your other policies. It’s an affordable way to help you keep an extraordinary event from becoming a financial life-changer. Now that you know what it is, how does it work?

How does an umbrella insurance policy work?

An umbrella policy builds on the liability coverage of your existing car insurance, homeowners insurance, and renters, condo or boat insurance. If you cause injuries or damage to someone else and max out the liability limit in your existing policy, umbrella insurance can provide additional coverage, adding a layer of protection for your finances.

Umbrella insurance may also provide coverage where your existing liability policies don’t — for example, if you’re sued for slander over a social media post or you borrow a friend’s jet ski and are sued for injuries to a swimmer. And it follows you anywhere in the world.