Umbrella insurance is designed to provide additional personal liability coverage after underlying policy limits are reached. It does not replace the home or auto policies beneath it.
Required underlying limits matter
Insurers may require specified liability coverage on home and auto policies before the umbrella applies.
Not every loss is covered
Business activity, intentional acts, and other exclusions can leave gaps. The contract controls.
Assets are not the only consideration
Future income and legal defense exposure can matter when deciding whether additional limits are useful.
Sources
- National Association of Insurance Commissioners, Personal Umbrella Policies.