Standard home, renters, or auto insurance policies all have coverage limits. But what happens if you’re sued for damages that go beyond those limits? This is where Umbrella Insurance comes in.

Umbrella insurance provides extra liability protection on top of your existing policies. Typically, it offers coverage in increments of $1 million or more, ensuring that you are financially secure even in the event of a major lawsuit or accident.

This type of insurance covers a wide range of situations—bodily injuries, property damage, defamation, legal fees, and more. For example, if you cause a car accident with multiple injuries and the damages exceed your auto insurance limits, your umbrella policy will cover the excess amount. Similarly, if someone gets injured on your property and sues you, umbrella coverage ensures you are protected.

Another major advantage is that umbrella insurance extends worldwide. It also covers legal defense costs, which can be extremely expensive even if you are not found guilty.

In essence, umbrella insurance provides peace of mind and protects your assets, savings, and future earnings from being wiped out by unexpected claims or lawsuits.