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An umbrella insurance policy is a liability policy that helps in protection of one’s assets as an addition to other primary policies. The umbrella insurance policy increases the liability limits of your included primary policies such as your homeowners, automobile, motorcycle or boat insurance policies. The protection offered by the umbrella insurance begins right after the exhaustion of the liabilities covered by the other policies.
The policy also covers claims that are not covered by other policies. For instance you can potentially get covered for false arrest, slander, libel and an extra liability protection for rental units that belong to you.
Umbrella policies are an inexpensive way to significantly increase your liability insurance protection.