What is Umbrella Insurance? Who Needs It? | Fox Business

what is umbrella insurance

What is Umbrella Insurance? Who Needs It?

Dear Insurance Adviser,

What is umbrella insurance, and how do I know if I need it?

-- Rainy-Day Woman

Dear Rainy, An umbrella policy was created to provide additional coverage when a lawsuit brought over injuries and/or property damage that you cause exceeds the liability limits on your car insurance, home insurance, boat insurance, etc.

An umbrella policy has three advantages. It provides additional lawsuit coverage of $1 million or more. It provides added coverage for defense costs, which can easily amount to $100,000 or more. And finally, it provides liability coverage for some lawsuits not covered by your underlying auto or home insurance. Examples include if you're sued over an incident involving a boat you rented on vacation, a car you rented in Europe, or even your work on ... http://insurance-a.ucoz.com/news/what_is_umbrella_insurance/2013-06-18-3428