A personal umbrella insurance policy acts like an "umbrella," shielding your personal finances from the adverse effects of potential claims. It can often be used in conjunction with the liability portion of the following policies:
Homeowners insurance
Renters insurance
Auto insurance
Boat insurance
RV insurance
Motorcycle insurance
Before your umbrella policy begins paying for third-party damages, a covered accident or incident for which you are legally liable must exceed the limits of one of your other liability policies. All policies vary, but many umbrella policies provide a minimum of $1 million in additional coverage and may cover liabilities not covered by your other insurance policies.