Umbrella insurance provides additional liability coverage beyond the limits of your existing insurance policies, such as auto, homeowners, and renters insurance. If you face a lawsuit or significant claim that exceeds the liability limits of your primary insurance, umbrella insurance can cover the difference.

For example, if you’re found responsible for a car accident that causes significant damage or injury, and your auto insurance doesn’t cover the full amount, an umbrella policy can help cover the remaining costs. Similarly, umbrella insurance can cover legal fees and personal injury claims that go beyond the standard coverage of your other policies.

Umbrella insurance is especially valuable for those with significant assets to protect, offering an extra layer of financial security against large claims.