Umbrella Insurance
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Extra liability coverage beyond your other policies.
Definition
Umbrella insurance provides additional liability coverage beyond the limits of your auto or homeowners policies. It kicks in when you exhaust the liability limits of your underlying policies. Umbrella policies typically start at $1 million in coverage and are relatively inexpensive.
Example
After causing a severe accident with $500,000 in damages—exceeding his auto liability limits—Mike's umbrella policy covered the rest.
More Home Insurance Terms
Insurance that covers the structure of your home.
Coverage for your belongings inside your home.
Coverage for structures not attached to your home.
Pays living expenses if you can't stay in your home.
The cost to replace property with new items of like quality.
Covers injuries to others that occur on your property.
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