Umbrella Policy
A supplemental liability insurance policy that provides coverage above and beyond the limits of your homeowners, auto, or boat insurance. Umbrella policies typically start at $1 million in additional coverage and are relatively inexpensive. They protect you from large lawsuits and liability claims.
Real-World Example
When a guest was seriously injured at Mark's home and the medical bills exceeded his homeowners liability limit, his umbrella policy covered the remaining $400,000.
Related Terms
Disclaimer: This glossary entry is for informational purposes only and does not constitute financial or insurance advice. Consult with a licensed insurance professional for personalized guidance. GuardianChoices may earn affiliate commissions from links on this site — see our advertiser disclosure.
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