Umbrella insurance is extra liability insurance. This type of insurance policy is designed to help protect you from major claims and lawsuits and, as a result, it helps protect your assets and your future. It does this in two ways:
Because it is in excess of specifically defined limits, your agent may have to raise the limits on any underlying home, auto, boat or motorcycle policy in order to provide the correct base limit. For example, a policyholder has an auto policy with underlying liability limits set at $100,000, but the umbrella policy expects them to be at least $250,000. Your agent would increase the policy liability limit on your auto policy from $100,000 to $250,000 before is using the umbrella policy.
Here are examples of the types of coverages provided by an umbrella policy and how they protect you:
Commercial insurance customers are also eligible for Commercial Umbrella policies in the same or similar ways as personal lines customers.