Umbrella insurance is extra liability coverage that kicks in after the liability coverage on your auto policy or homeowner policy is exhausted. The coverage adds to the coverage on the original policy.
There are two factors in umbrella insurance coverage, the value of coverage and the level it kicks in at. For Example, let’s say the claim value was $500,000; but the liability limit on your homeowner’s policy was only $200,000. You would need Umbrella insurance coverage that kicks in at $200,000, with a coverage amount of at least $300,000.
Ask your local agent about an umbrella policy and you will have the piece of mind knowing that you are completely covered in the event that you have reached your policy limit.