Q What is an umbrella insurance policy?
If you have standard home, renter's or auto insurance, you have some liability coverage. This insurance helps pays for legal judgments against you as well as your lawyer's fees, up to your policy’s limits.
However, you may want to consider buying an umbrella policy to give you additional protection. An umbrella policy gives you coverage after you reach the limit on the liability coverage for your homes, renter's, condo, or auto policy. It also covers you for legal matters, such as libel and slander suits.
Umbrella policies are inexpensive, because they become effective after the liability limits on your other policies have been reached. However, in order to buy an umbrella policy your existing policies must meet certain limits.