An Umbrella for Auto and Home Liability
Everyone knows an umbrella will shield you from the rain. For insurance purposes, an umbrella policy shields you from the potential damaging effects of a large liability claim.
How does it work? Within the terms of the policy, umbrella insurance supplements the liability limits already provided by auto and homeowners policies offering protection in the event those underlying policy limits are exceeded. Increased limits of liability are beneficial in the event that an auto accident or homeowner's claim results in an injury and subsequent lawsuit against you.
An umbrella policy also offers protection against personal injury liability, such as libel, slander and defamation, not typically covered by car insurance or homeowners policies.