Umbrella insurance is a type of personal liability insurance that ensures that you are covered against all claims against you, even if your regular homeowners, auto, or watercraft policy coverage should fall short. If you are ever liable for a claim that exceeds your policy provisions, umbrella coverage can prove indispensable.
Aside from providing security against excessive claims on your other insurance policies, umbrella insurance also covers some things that you will not find in the provisions of any other type of insurance policy, including libel, slander, malicious prosecution, wrongful entry, invasion of privacy and false imprisonment.
Umbrella insurance doesn’t only cover the policyholder; all members of the household are covered. The incident doesn’t have to involve your property or vehicle directly to be covered by your umbrella policy.