Umbrella Insurance

“Umbrella” insurance is a type of liability insurance policy that provides coverage in excess of specified other policies.  When an insured is liable to someone, the insured’s primary insurance policies pay up to their limits, and any additional amount is paid by the umbrella policy (up to the limit of the umbrella policy).  Typically, a person must have both a homeowner’s insurance policy and a motor vehicle insurance policy with certain minimum coverage amounts.  The umbrella policy picks up where the other policies leave off.  For example, if a homeowner’s insurance policy provides coverage of up to $300,000.00, the umbrella policy will provide coverage for amounts between $300,000.01 and one million dollars.  For more information about umbrella insurance, visit here.