An umbrella Liability policy covers a much more higher limits and goes above and beyond claims directly relating to your home or Auto. The main purpose of your Umbrella Policy is to protect your assets from an unforeseen event, such as a tragic
accident in which you are held responsible for damages or bodily injury, or a lawsuit. It covers the following
Damages to property
Personal umbrella coverage comes into play when your underlying liability limits (such as from a homeowners or auto insurance policy) have been reached.
Here is an example of how a personal umbrella policy works: If you’re at fault in a car accident that injures another driver, your regular automobile insurance may cover the other driver up to the limit you selected, say $200,000. If that limit is not enough to cover the other driver’s resulting medical bills, you may be sued for the difference. What if the accident you caused resulted in an injury that kept him from
doing his job for six months? Suddenly, he’s suing you for $1 million to cover the six months he’s away from work. This shows the importance of such a insurance.